Cryptographic currency exchange

ABSTRACT

In some embodiments, in connection with an API request to transact with an entity, a first conversion rate associated with a first time may be determined, where the first conversion rate is a current conversion rate for an on-chain asset at the first time; Based on a monitoring of a blockchain, a receipt of the on-chain asset at a second blockchain address from a first blockchain address associated with the user may be detected on the blockchain. In response to the detection, the on-chain asset may be converted to an off-chain asset at a second time associated with a second conversion rate, the second conversion rate being the current conversion rate for the on-chain asset at the second time. An amount of the off-chain asset may be transmitted to the entity, where the amount of the off-chain asset sent to the entity is based on the first conversion rate.

CROSS-REFERENCE TO RELATED APPLICATIONS

This application is a continuation of U.S. patent application Ser. No.16/952,539, filed Nov. 19, 2020, which is a continuation of U.S. patentapplication Ser. No. 16/243,688, filed Jan. 9, 2019, which is acontinuation of U.S. patent application Ser. No. 14/660,440, filed Mar.17, 2015, which claimed priority to U.S. Provisional Application No.61/954,434, filed Mar. 17, 2014; U.S. Provisional Application No.61/990,017, filed May 7, 2014; U.S. Provisional Application No.62/042,676, filed Aug. 27, 2014; U.S. Provisional Application No.62/056,100, filed Sep. 26, 2014; U.S. Provisional Application No.62/086,669, filed Dec. 2, 2014; and U.S. Provisional Application No.62/099,992, filed Jan. 5, 2015, each of which is incorporated herein byreference in its entirety.

BACKGROUND

The Bitcoin network is a peer-to-peer payment system having a pluralityof nodes that are connected to one another. Bitcoin exchange computersystems allow for users to exchange local currency into or out ofbitcoin. Users send payments by broadcasting digitally signed messagesto the Bitcoin network. Users may, for example, send and receivepayments using mobile applications on mobile devices, client software ora web browser.

Transactions do not explicitly identify the payor and payee by name orwallet. Instead, a bitcoin transaction transfers ownership to a newaddress, referred to as a “Bitcoin address”. The Bitcoin address isderived from the public portion of one or more cryptographic key pairs.The private portion of a key pair is not disclosed to the public. Tosend bitcoin sent to an address, a user broadcasts a payment messagethat is digitally signed with the associated private key.

Participants known as “miners” at miner computer systems verify andtimestamp transactions into a shared public database called a “blockchain”. The miners are rewarded with transaction fees and newly mintedbitcoin for their effort. The miner computer systems are specializedcomputers that append blocks of transactions to the block chain. Solvinga cryptographic puzzle required to append a block carries a reward plusfees included in transactions in the block.

Host computer systems reside at various nodes and may host accounts or“wallets” that allow users to make and accept payments using bitcoin.The wallet stores the public key of the Bitcoin address and itsassociated private key.

The transfer of bitcoin may be an onerous task if the entire public keyof the Bitcoin address has to be copied and transmitted.

When a transaction is made between two wallets at the same or differenthost computer systems, the transaction is broadcast to the Bitcoinnetwork for block chain verification. Such a block chain verificationmay take a long time to complete. Miner fees are also associated withsuch a transfer and have to be paid by a host computer system requestingthe transfer.

It may be a security concern for users that their Bitcoin addresses maybe stolen from their wallets. Existing systems do not provide a solutionfor maintaining security of Bitcoin addresses while still allowing theusers to use Bitcoin addresses within their wallets for transacting withother users.

A merchant computer system often has an online store and a website. Acustomer at a customer computer system may use a browser to access theonline store via the website. Items are displayed for purchase in alocal currency. Exchange rate between bitcoin and local currency changesover short periods of time. The price in local currency may thus changebetween the time that the local currency is displayed to the customerand the time that the customer decides to make the purchase. As aresult, the customer or the merchant may incur a loss in local currency.The customer or merchant may then be reluctant to purchase usingbitcoin.

In order for a user to access their wallet, the user may log into theiraccount through the website using a user name and password. If the username and password become compromised then it may be possible for bitcointo be stolen out of the wallet. Users may therefore be reluctant tostore bitcoin in their wallets without any additional security features.

Bitcoin transacting requires the use of a public key and a private key.The private key is used to sign an authorization and the public key isused to verify the signature. Some users may require control over theirprivate keys in order to ensure to such users that bitcoin transactingwill not take place without their express authorization.

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SUMMARY

The invention provides a host computer system for transacting bitcoinincluding a processor, a network interface device connected to theprocessor, a computer readable medium connected to the processor, a datastore on the computer readable medium and a set of instructions on thecomputer readable medium that are executable by the processor. The setof instructions includes a wallet establishment module, a login module,a hosted email module and a wallet management. The wallet establishmentmodule establishes a first wallet in the data store, stores logindetails for the first wallet and storing a value representative of anamount of bitcoin held by the first wallet. The login module receiveslogin credentials over the network interface device for the first walletfrom a first user device, verifies whether the login credentials matchthe login details for the first wallet, and if the login credentialsmatch the login details then logs the first user device into the firstwallet. The hosted email module, if the first user device is logged intothe wallet, permits transmission of an email by a user of the first userdevice to an email address of a second user device. The walletmanagement module, in response to the transmission of the email, recordsa transfer in the first wallet for an amount of bitcoin from the firstwallet to a second wallet identified by the email address.

The invention also provides a method of transacting bitcoin. A processorestablishes a first wallet in a data store connected to the processor.The processor stores login details for the first wallet. The processorstores a value representative of an amount of bitcoin held by the firstwallet. The processor receives login credentials for the first walletfrom a first user device. The processor verifies whether the logincredentials match the login details for the first wallet. The processor,if the login credentials match the login details then, logs the firstuser device into the first wallet. The processor, if the first userdevice is logged into the wallet, permits transmission of an email by auser to the first user device to an email address of a second userdevice and in response to the transmission of the email. The processorrecords a transfer in the first wallet for an amount of bitcoin from thefirst wallet to a second wallet identified by the email address.

The invention further provides a non-transitory computer-readable mediumhaving stored thereon a set of instructions that are executable by aprocessor to carry out a method of transacting bitcoin. The processorestablishes a first wallet in a data store connected to the processor.The processor stores login details for the first wallet. The processorstores a value representative of an amount of bitcoin held by the firstwallet. The processor receives login credentials for the first walletfrom a first user device. The processor verifies whether the logincredentials match the login details for the first wallet. The processor,if the login credentials match the login details then, logs the firstuser device into the first wallet. The processor, if the first userdevice is logged into the wallet, permits transmission of an email by auser to the first user device to an email address of a second userdevice and in response to the transmission of the email. The processorrecords a transfer in the first wallet for an amount of bitcoin from thefirst wallet to a second wallet identified by the email address.

The invention further provides a first host computer system fortransacting bitcoin including a processor at a first node of the Bitcoinnetwork, a network interface device connected to the processor, acomputer readable medium connected to the processor, a data store on thecomputer readable medium and a set of instructions on the computerreadable medium that are executable by the processor. The set ofinstructions includes a wallet establishment module. The walletestablishment module establishes a first and second wallets in the datastore and stores a value representative of an amount of bitcoin held bythe first wallet. The wallet management module receives, over thenetwork interface device, a first transfer instruction for an amount ofbitcoin from the first wallet and an identifier of the second wallet, inresponse to the first transfer instruction, records a transfer in thefirst wallet for the amount of bitcoin in the first transfer instructionout of the first wallet and a transfer in the second wallet, identifiedby the identifier of the second wallet, for the amount of bitcoin in thefirst transfer instruction into the second wallet without paying aminer's fee for the first transfer. In order to execute a subsequenton-block chain transaction, the wallet management module receives, overthe network interface device, a second transfer instruction for anamount of bitcoin from the first wallet and a bitcoin address associatedwith a second node of the Bitcoin network, and in response to the secondtransfer instruction, records a transfer in the first wallet for theamount of bitcoin in the second transfer instruction out of the firstwallet, broadcasts a message to the Bitcoin network, including to thesecond node, to record a transfer associated with the bitcoin addressassociated with the second node, for the amount of bitcoin in the secondtransfer instruction, and pays a miner's fee for the second transfer.

The invention further provides a method of transacting bitcoinincluding. A processor of a first host computer system at a first nodeof the Bitcoin network establishes first and second wallets in a datastore connected to the processor. The processor stores a valuerepresentative of an amount of bitcoin held by the first wallet. Theprocessor receives a first transfer instruction for an amount of bitcoinfrom the first wallet and an identifier of the second wallet. Theprocessor, in response to the first transfer instruction, records atransfer in the first wallet for the amount of bitcoin in the firsttransfer instruction out of the first wallet and a transfer in thesecond wallet, identified by the identifier of the second wallet, forthe amount of bitcoin in the first transfer instruction into the secondwallet without paying a miner's fee for the first transfer. Theprocessor receives a second transfer instruction for an amount ofbitcoin from the first wallet and a bitcoin address associated with asecond node of the bitcoin network. The processor, in response to thesecond transfer instruction records a transfer in the first wallet forthe amount of bitcoin in the second transfer instruction out of thefirst wallet, broadcasts a message to the Bitcoin network, including tothe second node, to record a transfer associated with the bitcoinaddress associated with the second node, for the amount of bitcoin inthe second transfer instruction and pays a miner's fee for the secondtransfer.

The invention further provides a non-transitory computer-readable mediumhaving stored thereon a set of instructions that are executable by aprocessor of a first host computer system at a first node of the Bitcoinnetwork to carry out a method of transacting bitcoin. The processorestablishes first and second wallets in a data store connected to theprocessor. The processor stores a value representative of an amount ofbitcoin held by the first wallet. The processor receives a firsttransfer instruction for an amount of bitcoin from the first wallet andan identifier of the second wallet. The processor, in response to thefirst transfer instruction, records a transfer in the first wallet forthe amount of bitcoin in the first transfer instruction out of the firstwallet and a transfer in the second wallet, identified by the identifierof the second wallet, for the amount of bitcoin in the first transferinstruction into the second wallet without paying a miner's fee for thefirst transfer. The processor receives a second transfer instruction foran amount of bitcoin from the first wallet and a bitcoin addressassociated with a second node of the bitcoin network. The processor, inresponse to the second transfer instruction records a transfer in thefirst wallet for the amount of bitcoin in the second transferinstruction out of the first wallet, broadcasts a message to the Bitcoinnetwork, including to the second node, to record a transfer associatedwith the bitcoin address associated with the second node, for the amountof bitcoin in the second transfer instruction and pays a miner's fee forthe second transfer.

The invention also provides a host computer system for transactingbitcoin including a processor, a computer readable medium connected tothe processor, a local storage on the computer readable medium and a setof instructions on the computer readable medium that are executable bythe processor. The set of instructions includes a register, a Bitcoinaddress and an associated private key and value stored in the register,a local controller, a splitter, an offline distribution module, at leastone restoration interface, and an assembler. The local controllertransfers a private key for a Bitcoin address of a vault, to a localstorage connected to a processor and transfers the value of the Bitcoinaddress in the register to the vault. The splitter splits the privatekey of the Bitcoin address of the vault into a plurality of codes. Theoffline distribution module distributes the codes to remote distributedstorage locations, removes the private key of the Bitcoin address of thevault from the local storage, and removes the value for the Bitcoinaddress of the register from the Bitcoin address of the register. Therestoration interface receives at least some of the codes into which theprivate key for Bitcoin address of the vault has been split. Theassembler assembles the codes that have been received into the privatekey of the Bitcoin address of the vault. The local controller restoresthe private key of the Bitcoin address of the vault from the localstorage, and restores the value for the Bitcoin address in the registerfrom the vault.

The invention further provides a method of transacting bitcoin. Aprocessor transfers a private key of the Bitcoin address of a vault to alocal storage connected to the processor. The processor splits theprivate key of the Bitcoin address of the vault into a plurality ofcodes. The processor distributes the codes to remote distributed storagelocations. The processor transfers a value of a Bitcoin address in aregister to the vault. The processor receives at least some of the codesinto which the private key of the Bitcoin address of the vault has beensplit. The processor assembles the codes that have been received intothe private key of the Bitcoin address of the vault. The processorrestores the private key of the Bitcoin address of the vault to thevault. The processor restores the value of the Bitcoin address in theregister from the vault.

The invention also provides a non-transitory computer-readable mediumhaving stored thereon a set of instructions that are executable by aprocessor to carry out a method of transacting bitcoin. A processortransfers a private key of the Bitcoin address of a vault to a localstorage connected to the processor. The processor splits the private keyof the Bitcoin address of the vault into a plurality of codes. Theprocessor distributes the codes to remote distributed storage locations.The processor transfers a value of a Bitcoin address in a register tothe vault. The processor receives at least some of the codes into whichthe private key of the Bitcoin address of the vault has been split. Theprocessor assembles the codes that have been received into the privatekey of the Bitcoin address of the vault. The processor restores theprivate key of the Bitcoin address of the vault to the vault. Theprocessor restores the value of the Bitcoin address in the register fromthe vault.

The invention further provides a host computer system for transactingbitcoin including a processor, a network interface device connected tothe processor, a computer readable medium connected to the processor, alocal storage on the computer readable medium and a set of instructionson the computer readable medium that are executable by the processor.The set of instructions includes a wallet, a plurality of Bitcoinaddresses stored in the wallet, a first vault, and a local controller.The local controller is executable for selecting a first transfer set ofthe Bitcoin addresses for cold storage in the first vault, transferringat least a portion of each of the Bitcoin addresses of the firsttransfer set to a first vault while keeping the portions a firsttransaction set in the register, and restoring at least the portion ofthe Bitcoin addresses of the first transfer set from the first vault tothe wallet and a wallet management module transacting using the Bitcoinaddresses of the first transacting set without permitting transactingwith the Bitcoin addresses of the first transfer set due to the portionsthereof being restored to the first vault, and transacting using theBitcoin addresses of the first transfer set due to the portions thereofbeing restored from the first vault to the wallet.

The invention also provides a method of transacting bitcoin. A processorstores a plurality of Bitcoin addresses in a wallet. The processorselects a first transfer set of the Bitcoin addres ses for cold storagein a first vault. The processor transfers at least a portion of each ofthe Bitcoin addresses of the first transfer set to the first vault whilekeeping the portions a first transaction set in the register. Theprocessor transacts using the Bitcoin addresses of the first transactingset without permitting transacting with the Bitcoin addresses of thefirst transfer set due to the portions thereof being transferred to thefirst vault. The processor restores the portion of the Bitcoin addressesof the first transfer set from the first vault to the wallet. Theprocessor transacts using the Bitcoin addresses of the first transferset due to the portions thereof being restored from the first vault tothe wallet.

The invention further provides a non-transitory computer-readable mediumhaving stored thereon a set of instructions that are executable by aprocessor to carry out a method of transacting. A processor stores aplurality of Bitcoin addresses in a wallet. The processor selects afirst transfer set of the Bitcoin addresses for cold storage in a firstvault. The processor transfers at least a portion of each of the Bitcoinaddresses of the first transfer set to the first vault while keeping theportions a first transaction set in the register. The processortransacts using the Bitcoin addresses of the first transacting setwithout permitting transacting with the Bitcoin addresses of the firsttransfer set due to the portions thereof being transferred to the firstvault. The processor restores the portion of the Bitcoin addresses ofthe first transfer set from the first vault to the wallet. The processortransacts using the Bitcoin addresses of the first transfer set due tothe portions thereof being restored from the first vault to the wallet.

The invention also provides a method of effecting payment includingreceiving, by a host computer system, a request for payment from amerchant computer system, including an amount in a currency,determining, by the host computer system, a first exchange rate, whereinthe first exchange rate fluctuates and the first exchange rate isdetermined at a first moment in time, converting, by the host computersystem, the amount in the currency to an amount in bitcoin using thefirst exchange rate at the first moment in time, receiving, by the hostcomputer system, a send instruction from the customer computer system,wherein the send instruction is at a second moment in time later thanthe first moment in time and the exchange rate at the second moment intime is a second exchange rate that is different than the first exchangerate at the first moment in time, receiving, by the host computersystem, payment in bitcoin from the customer in an amount that is basedon the amount in bitcoin and transmitting, by the host computer system,in response to receiving the send instruction from the customer computersystem, a payment instruction to pay currency to the merchant, whereinthe currency paid to the merchant is for an amount that is at least inpart based on the amount in the currency that is converted to bitcoin atthe first moment in time even though the exchange rate is different atthe second moment in time.

The invention further provides a host computer system for effectingpayment including a processor, a computer readable medium connected tothe processor and a set of instructions on the computer readable mediumthat are executable by the processor. The set of instructions includesan application programmable interface (API) receiving a request forpayment from a merchant computer system, including an amount in acurrency, a currency converter determining a first exchange rate,wherein the first exchange rate fluctuates and the first exchange rateis determined at a first moment in time, and converting, by the hostcomputer system, the amount in the currency to an amount in bitcoinusing the first exchange rate at the first moment in time, transactionprocessor receiving a send instruction from the customer computersystem, wherein the send instruction is at a second moment in time laterthan the first moment in time and the exchange rate at the second momentin time is a second exchange rate that is different than the firstexchange rate at the first moment in time, and receiving a payment inbitcoin from the customer in an amount that is based on the amount inbitcoin and a bank transfer module transmitting in response to receivingthe send instruction from the customer computer system, a paymentinstruction to pay currency to the merchant, wherein the currency paidto the merchant is for an amount that is at least in part based on theamount in the currency that is converted to bitcoin at the first momentin time even though the exchange rate is different at the second momentin time.

The invention also provides a non-transitory computer-readable mediumhaving stored thereon a set of instructions that are executable by aprocessor to carry out a method of transacting bitcoin includingreceiving, by a host computer system, a request for payment from amerchant computer system, including an amount in a currency,determining, by the host computer system, a first exchange rate, whereinthe first exchange rate fluctuates and the first exchange rate isdetermined at a first moment in time, converting, by the host computersystem, the amount in the currency to an amount in bitcoin using thefirst exchange rate at the first moment in time, receiving, by the hostcomputer system, a send instruction from the customer computer system,wherein the send instruction is at a second moment in time later thanthe first moment in time and the exchange rate at the second moment intime is a second exchange rate that is different than the first exchangerate at the first moment in time, receiving, by the host computersystem, payment in bitcoin from the customer in an amount that is basedon the amount in bitcoin and transmitting, by the host computer system,in response to receiving the send instruction from the customer computersystem, a payment instruction to pay currency to the merchant, whereinthe currency paid to the merchant is for an amount that is at least inpart based on the amount in the currency that is converted to bitcoin atthe first moment in time even though the exchange rate is different atthe second moment in time.

The invention further provides a method of managing bitcoin, includingestablishing, by a host computer system, a vault and storing first andsecond electronic communication addresses in relation to the vault,storing, by the host computer system, bitcoin in the vault, receiving,by the host computer system, a request to transfer an amount of thebitcoin out of the vault, transmitting, by the host computer system, inresponse to the request, first and second messages over a network to thefirst and second addresses, detecting, by the host computer system,whether first and second authorization instructions are received due toone or more users reacting to the first and second messages sent to thefirst and second addresses and transferring, by the host computersystem, the amount of bitcoin out of the vault only if both the firstand second authorization instructions are detected.

The invention also provides a non-transitory computer-readable mediumhaving stored thereon a set of instructions which, when executed by aprocessor, executes a method including establishing, by a host computersystem, a vault and storing first and second electronic communicationaddresses in relation to the vault, storing, by the host computersystem, bitcoin in the vault, receiving, by the host computer system, arequest to transfer an amount of the bitcoin out of the vault,transmitting, by the host computer system, in response to the request,first and second messages over a network to the first and secondaddresses, detecting, by the host computer system, whether first andsecond authorization instructions are received due to one or more usersreacting to the first and second messages sent to the first and secondaddresses and transferring, by the host computer system, the amount ofbitcoin out of the vault only if both the first and second authorizationinstructions are detected.

The invention further provides a bitcoin management system, including aprocessor, a computer-readable medium connected to the processor and aset of instructions on the computer readable medium that are executableby the processor. The set of instructions includes a vault establishmentwizard establishing a vault and storing first and second electroniccommunication addresses in relation to the vault, transaction processorstoring bitcoin in the vault and a vault management module receiving arequest to transfer an amount of the bitcoin out of the vault,transmitting, in response to the request, first and second messages overa network to the first and second addresses, detecting whether first andsecond authorization instructions are received due to one or more usersreacting to the first and second messages sent to the first and secondaddresses, and instructing the transaction processor to transfer theamount of bitcoin out of the vault only if both the first and secondauthorization instructions are detected.

The invention also provides a method of transacting bitcoin includingstoring, by a host computer system, a public key, receiving, by the hostcomputer system, a request from a user computer system to transact usinga bitcoin address, transmitting, by the host computer system, averification script to the user computer system, the verification scriptincluding an authorization and a signature algorithm that is executableon the user computer system to sign the authorization with a private keyto obtain a signed authorization that includes the signature andtransmit the signed authorization to the host computer system,receiving, by the host computer system, the signed authorizationincluding the signature from the user computer system, verifying, by thehost computer system, the signature of the signed authorization receivedfrom the user computer system using a public key; and transacting, bythe host computer system, with the bitcoin address, the transactingbeing permitted due to a successful verification of the signature butnot upon an unsuccessful verification of the signature.

The invention further provides a host computer system including aprocessor, a set of data and instructions on the computer-readablemedium that are executable by the processor that are executable by theprocessor, a public key, a transaction processor receiving a requestfrom a user computer system to transact using a bitcoin address, averification script that is transmitted to the user computer system, theverification script including an authorization and a signature algorithmthat is executable on the user computer system to sign the authorizationwith a private key to obtain a signed authorization that includes thesignature and transmit the signed authorization to the host computersystem, the host computer system receiving the signed authorizationincluding the signature from the user computer system, and averification module verifying the signature of the signed authorizationreceived from the user computer system using a public key, thetransaction processor transacting with the bitcoin address, thetransacting being permitted due to a successful verification of thesignature but not upon an unsuccessful verification of the signature.

The invention also provides a host computer system including aprocessor, a network interface device connected to the processor, acomputer readable medium connected to the processor and a set ofinstructions on the computer readable medium that are readable andexecutable by the processor. The set of instructions include an embeddedcode generator generating an embedded code for inclusion within awebsite of a partner computer system, the embedded code including astartup caller causing transmission of a startup call from the sendercomputer system to the host computer system, a startup call responderreceiving the startup call from the sender computer system andtransmitting, in response to the startup call, a tip button and asession script to the sender computer system, the session script beingexecutable by the sender computer system to transmit a session call tothe host computer system and a session responder transmitting, inresponse to the session call, at least one payment button and a paymentscript to the sender computer system, the payment button beingselectable by the user of the sender computer system to execute thepayment script, the payment script transmitting an instruction to atransaction processor to transfer funds from a sender account to areceiver account.

The invention further provides a method of transferring funds includinggenerating, by a host computer system, an embedded code for inclusionwithin a website of a partner computer system, the embedded codeincluding a startup caller causing transmission of a startup call fromthe sender computer system to the host computer system, receiving, bythe host computer system, the startup call from the sender computersystem, transmitting, by the host computer system in response to thestartup call, a tip button and a session script to the sender computersystem, the session script being executable by the sender computersystem to transmit a session call to the host computer system andtransmitting, by the host computer system in response to the sessioncall, at least one payment selection and a payment script to the sendercomputer system, the payment selection being selectable by the user ofthe sender computer system to execute the payment script, the paymentscript transmitting an instruction to a transaction processor totransfer funds from a sender account to a receiver account.

The invention also provides a method of transacting bitcoin includingexecuting, by a host computer system, a trading algorithm, includingreceiving sell offers for bitcoin from a sellers, receiving a buy offersfor bitcoin from a buyers, creating respective matches wherein eachmatch includes one of the buy offers and one of the sell offers,broadcasting each respective match over a multicast pipeline, receivingeach respective match with a clearing module and clearing the respectivematch by updating an exchange database to reflect the respective matchby transferring a representation of bitcoin from the seller to the buyerand transferring a representation of currency from the buyer to theseller.

The invention further provides a system for transacting bitcoinincluding an order gateway receiving sell offers for bitcoin from asellers and receiving a buy offers for bitcoin from a buyers, a matchingengine creating respective matches wherein each match includes one ofthe buy offers and one of the sell offers, a multicast pipeline, thematching engine broadcasting each respective match over the multicastpipeline, an exchange database; and a clearing module receiving eachrespective and clearing the respective match by updating the exchangedatabase to reflect the respective match by transferring arepresentation of bitcoin from the seller to the buyer and transferringa representation of currency from the buyer to the seller, therebyexecuting a trading algorithm.

BRIEF DESCRIPTION OF THE DRAWINGS

The invention is further described by way of example with reference tothe accompanying drawings, wherein:

FIG. 1A is a block diagram of a network environment that includes theBitcoin network and a number of systems forming part thereof orconnected thereto;

FIG. 1B is a block diagram of a first host computer system and a firstand second user devices connected thereto;

FIG. 2 is diagrammatic view of a first wallet that is held within afirst host computer system in FIG. 1 ;

FIG. 3 is a view similar to FIG. 2 , further illustrating a secondwallet that has been established within the first host computer system;

FIG. 4 is a view of an email that is received by the second user devicein FIG. 1 ;

FIG. 5 is a view of a browser displaying a user interface with fieldsfor creating login details for the second wallet;

FIGS. 6 to 30 are views similar to FIG. 5 that step a user of the seconduser device through a wallet set up;

FIGS. 31 to 33 are views of the browser wherein the user interfacediscloses various tools that can be used by the user;

FIGS. 34 to 37 are views of the browser wherein the user interface isused by the user to purchase bitcoin from the first host computersystem;

FIG. 38 is an email that is received by the second user device toconfirm the purchase of the bitcoin from the first host computer system;

FIG. 39 is an email that is received by the second user device with anotification that bitcoin has been added to their wallet as part of areferral bonus system;

FIG. 40 is a view of the browser wherein the user interface displays“Limits and Verifications” associated with the second wallet;

FIG. 41 is a view similar to FIG. 3 displaying transfer of bitcoin fromthe second wallet to the first wallet;

FIGS. 42 and 43 are views of the browser when the user interface stepsthe user through the transfer of bitcoin from the second wallet to thefirst wallet;

FIG. 44 is a view of the browser wherein the user interface displaysBitcoin addresses associated with transactions that have been completed;

FIG. 45 is a view similar to FIG. 40 further showing the transfer ofbitcoin from the second wallet to a third wallet that is connected to asecond host computer system;

FIG. 46 is a block diagram illustrating splitting of a private key of avault and offline distribution;

FIG. 47 is a block diagram illustrating removal of the private key ofthe vault;

FIG. 48 is a block diagram illustrating offline or “cold” storage ofvalues of Bitcoin addresses of a wallet in the vault;

FIG. 49 is a block diagram illustrating isolation of the vault with itsprivate key removed;

FIG. 50 is a block diagram illustrating how the private key of the vaultand the value of the Bitcoin addresses are restored;

FIGS. 51 a to 51 d are block diagrams that illustrate how values ofcertain Bitcoin addresses in a wallet are removed and others aremaintained;

FIG. 52 is a graph illustrating how the wallet is maintained within arange so that only a portion of the wallet is “hot” in the sense that auser of the wallet can use the “hot” portion for transacting withanother user;

FIG. 53 is a block diagram that shows how an intermediate hot wallet isused to collect value from multiple wallets before transfer to a vault;

FIG. 54 is a block diagram of a network environment that includes acustomer computer system and merchant computer system;

FIG. 55 is a block diagram illustrating functioning for purposes oflocking an exchange rate in when processing a transaction made by thecustomer computer system on the merchant computer system in FIG. 54 ;

FIG. 56 is a flow chart illustrating the establishment of a personalvault;

FIG. 57 is a flow chart illustrating how bitcoin is transferred into andout of the vault;

FIG. 58 is a block diagram of the first host computer systemillustrating components that are used for establishing the vault andtransferring bitcoin into and out of the vault;

FIG. 59 is an email that is transmitted to verify a secondary emailaddress;

FIG. 60 is a view of a browser wherein a user interface displays optionsfor transferring bitcoin out of a vault;

FIGS. 61 and 62 are emails that are transmitted to primary and secondaryemail addresses to approve a withdrawal;

FIG. 63 is a view of the browser with the user interface displaying atransaction status window;

FIG. 64 is a block diagram illustrating the establishment of auser-controlled vault;

FIG. 65 is a block diagram illustrating the user of the user-controlledvault for authorizing a transaction;

FIG. 66 is a block diagram of an address generator that is used by theuser-controlled vault;

FIG. 67 to FIG. 71 are a block diagrams illustrating the functioning ofa tip button;

FIG. 72 is a block diagram of a system for transacting bitcoin accordingto an embodiment of the invention;

FIGS. 73 a to 73 f illustrate the use of the system of FIG. 72 forexecuting transfer-in, trading and withdrawal algorithms; and

FIG. 74 is a block diagram of a machine in the form of a computer systemforming part of the network environment.

DETAILED DESCRIPTION

FIG. 1A of the accompanying drawings illustrates a network environment10, including the Bitcoin network 12, a first host computer system 14within which the invention manifests itself, a second host computersystem 16, first and second user devices 18 and 20 connected over theInternet 22 to the first host computer system 14, a third user device 24connected to the second host computer system 16, a bitcoin exchangecomputer system 26 and a miner computer system 28.

The Bitcoin network 12 includes a host node 30 and a plurality of remotenodes 32A to D that are connected to one another. The first hostcomputer system 14 is connected to the host node 30. The bitcoinexchange computer system 26 is connected to the remote node 32A. Thesecond host computer system 16 is connected to the remote node 32B. Theminer computer system 28 is connected to the remote node 32D or couldreside on the same computer system.

The first host computer system 14 is used primarily for transactingbitcoin and, as shown in FIG. 1B, includes a website 34 having a userinterface 36, a login module 38, a wallet establishment module 40, aplurality of wallets 42, a wallet management module 44 and a hostedemail module 46. The login module 38 is connected to the website 34 andthe hosted email module 46 is connected to the login module 38. Thewallet establishment module 40 is connected to the wallets 42. Thehosted email module 46 is connected via the wallet management module 44to the wallets 42. As illustrated in the drawing, the first user device18 is connected over the Internet 22 and the user interface 36 to thelogin module 38. As further illustrated in the drawing, the hosted emailmodule 46 is connected over the Internet 22 to the second user device 20and the second user device 20 is connected over the Internet 22 and theuser interface 36 to the wallet establishment module 40.

As shown in FIG. 2 , the first host computer system 14 already has onewallet (Wallet A) stored among the wallets 42 corresponding to the firstuser device 18. The first wallet (Wallet A) includes an email address(email address A) and login details for the wallet. The first wallet(Wallet A) also includes a number of Bitcoin addresses (Bitcoin address1; Bitcoin address 2) that have been created due to respective transfersor purchases (Transfer 1; Transfer 2). The first Bitcoin address(Bitcoin address 1) is created due to a purchase (Transfer 1) from amaster wallet of the first host computer system 14 (First Host) and isrecorded for a value in an amount in bitcoin. The second Bitcoin address(Bitcoin address 2) is created due to a transfer (Transfer 2) fromanother location within the Bitcoin network 12 having a network addressoutside of the first host computer system 14 and is recorded for aparticular amount in bitcoin. The first wallet (Wallet A) was originallyestablished by the wallet establishment module 40 in FIG. 1B. The emailaddress (email address A) and login details of the first wallet werealso recorded by the wallet establishment module 40. The walletestablishment module 40 and wallet management module 44 were used torecord the transfers and purchases (Transfer 1; Transfer 2), theirBitcoin addresses (Bitcoin address 1; Bitcoin address 2), their valuesand other details within the wallet.

A user of the first user device 18 in FIG. 1B may use a mobileapplication on the first user device 18 to communicate over the Internet22 directly with the login module 38 or may use a browser on the firstuser device 18 to communicate via the Internet 22 and the website 34with the login module 38. A browser application on the first user device18 transmits a user interface request over the Internet 22 to thewebsite 34. The website 34 responds to the user interface request bytransmitting the user interface 36 over the Internet 22 to the firstuser device 18. The user interface 36 is then displayed on the firstuser device 18. The user interface 36 includes fields for entering logincredentials, which are then transmitted from the first user device 18over the Internet 22 to the login module 38. The login module 38verifies whether the login credentials match the login details for thewallet (Wallet A). If the login credentials match the login details,then the login module 38 logs the first user device 18 into the wallet(Wallet A) in FIG. 2 . If the login credentials do not match the logindetails, then the first user device 18 is not logged in to the wallet.

If the first user device 18 in FIG. 1B is logged in to the wallet, thelogin module 38 also provides access for the first user device 18 to thehosted email module 46 and transmission of an email by a user of thefirst user device 18 to an email address of the second user device 20.The user interface 36 provides a field for entering the email address ofthe second user device 20. The user interface 36 also includes a fieldfor entering an amount in bitcoin (or an amount in local currency thatis converted to bitcoin using an exchange rate) that is beingtransferred from the wallet (Wallet A) corresponding to the first userdevice 18 to a respective wallet among the wallets 42 corresponding tothe second user device 20 that has not yet been established at thispoint in time. The user of the first user device 18 then uses the hostedemail module 46 to send an email at 50 to the second user device 20. Thehosted email module 46 simultaneously at 52 instructs the walletestablishment module 40 to establish a wallet corresponding to the emailaddress within the wallets 42. The hosted email module 46 simultaneouslyinstructs the wallet management module 44 to record the amount ofbitcoin that is being transferred from the wallet (Wallet A) within thewallet corresponding to the email address.

FIG. 3 illustrates further activity within the wallets 42 due to theemail represented by a third transfer (Transfer 3). When the user of thefirst wallet (Wallet A) transmits the email, the system uses an existingBitcoin address (Bitcoin address 2) to which the outgoing transfer ischarged. Associated with the transfer (Transfer 3) are the email addressto which the email has been transmitted, the amount in bitcoin, aminer's fee of zero bitcoin that is paid by the first host computersystem 14 to any miner computer system such as the miner computer system28 in FIG. 1A, and a host fee of zero bitcoin that are charged to thewallet (Wallet A) for the transfer. A second wallet (Wallet B) isestablished by the wallet establishment module 40 and the email address(email address B) of the second user device 20 is recorded as anidentifier of the wallet (Wallet B). A Bitcoin address (Bitcoin address3) is recorded within the second wallet (Wallet B) for the transfer(Transfer 3). Within the second wallet (Wallet B), the transfer(Transfer 3) has the Bitcoin address (Bitcoin address 3), the identifierof the wallet (Wallet A) from where the funds are transferred associatedtherewith, and the amount in bitcoin that has been transferred. Theamount in bitcoin corresponding to the transfer (Transfer 3) of bothwallets (Wallet A; Wallet B) is the same, consistent with double entryaccounting principles. The second wallet (Wallet B) so far has no logindetails or any other user information and has not been accessed by auser of the second user device 20 at this point in time.

FIG. 4 illustrates the email when it is received at the second userdevice 20 in FIG. 1B. The email is received and viewed within an emailapplication on the second user device 20. The email includes a link(“Click here to sign in and claim this amount”) that, when selected bythe user of the second user device 20, transmits a user interfacerequest from the browser on the second user device 20 over the Internet22 to the website 34. The website 34 responds to the user interfacerequest to transmit the user interface 36 over the Internet 22 to thesecond user device 20 for viewing within the browser.

FIG. 5 illustrates the user interface 36 as displayed on the second userdevice 20 in FIG. 1B. The user interface 36 includes a plurality offields for the user of the second user device 20 to enter login detailsfor the second wallet (Wallet B), including a password and aconfirmation of the password. After the user has entered a password, theuser can access their wallet by selecting the button “Access My Wallet”.The wallet establishment module 40 in FIG. 1B stores the logincredentials in association with the second wallet (Wallet B). The loginmodule 38 also logs the second user device 20 into the second wallet(Wallet B). If the user is logged out, the user can be provided with alogin page where the user can enter login credentials that are comparedwith the login details in the second wallet (Wallet B) and then log intothe second wallet (Wallet B) following a favorable match between thelogin credentials and the login details.

FIG. 6 shows a view that is displayed on the second user device 20 inFIG. 1B. The user is already logged into the wallet, as shown in the topright. The user can accept or decline an agreement. FIG. 7 displays thefirst page that is displayed to the user following acceptance of theagreement. The page shows the current balance corresponding to theamount of bitcoin at the Bitcoin address (Bitcoin address 4) in FIG. 3 .The user can select various tools down the left margin, includingsending or requesting bitcoin, buying or selling bitcoin, accountsettings and various merchant tools. FIG. 8 illustrates a view that isdisplayed to the user if the user selects the “Buy/Sell” link in FIG. 7. The user is prompted to add a bank account. FIGS. 9 through 15 stepthe user through the entry of bank account details and verification ofthe bank account. The user can also select a credit card as a backuppayment. FIGS. 16 to 19 step the user through the entry of a credit cardnumber and a billing address, and FIGS. 20 and 21 step the user througha verification process to verify that the user is in control of thecredit card account. FIGS. 22 and 23 request additional information fromthe user. FIG. 23 also allows the user to verify a phone at a phonenumber and FIGS. 24 through 27 step the user through a process forverifying their phone and phone number. FIGS. 28 through 30 illustrate aprocess for verifying an identity of the user of the second user device20. As illustrated in FIGS. 31 to 33 , the top margin within the accountsettings allow for additional tools such as referrals (FIG. 31 ),viewing of Bitcoin addresses (FIG. 32 ), and integration with anapplication programmable interface (FIG. 33 ).

FIG. 34 illustrates a process that is initiated by the user to purchasebitcoin from a wallet of the first host computer system 14. In thepresent example, the user selects one (1) bitcoin (BTC) to purchase.FIGS. 35 and 36 step the user through the process of purchasing thebitcoin. Once the bitcoin is purchased, the user can select on “History”tab in the top margin to display a view as shown in FIG. 37 wherein thetransaction is displayed and is marked as “PENDING”.

FIG. 38 shows an email that is transmitted by the hosted email module 46in FIG. 1B to the second user device 20 to confirm the purchase of thebitcoin following selection of a “Confirm” button in FIG. 35 . The emailalso has a link that, when selected by the user, opens the browser onthe second user device 20 and allows the user to login to their walletand view the transaction.

FIG. 39 shows an email that is transmitted by the hosted email module 46in FIG. 1B to the second user device 20 with a notification that bitcoinhas been added to their wallet as part of a referral bonus system.

FIG. 40 illustrates a view that is displayed when the user selects a“Limits and Verifications” tab in the top margin of the “Buy/Sell” page.

When the user selects the “Send/Request” link in the left margin in FIG.40 , the user is provided an option to send bitcoin from their wallet(Wallet B) in FIG. 3 to another wallet (e.g. the first wallet (WalletA)) in FIG. 3 .

FIG. 41 illustrates further transfers or purchases (Transfer 4; Transfer5; Transfer 6). The fourth transfer (Transfer 4) represents the purchaseof bitcoin from the first host computer system's 14 master wallet.

The fifth transfer (Transfer 5) represents the transfer of bitcoin fromthe second wallet (Wallet B) to the first wallet (Wallet A). The secondwallet (Wallet B) now has login details stored therein. If the seconduser device 20 in FIG. 1B has been logged out of the second wallet(Wallet B), then the second user device 20 is first directed to thelogin module 38 which receives login details for the second wallet(Wallet B) from the second user device 20, verifies whether the logincredentials for the second wallet (Wallet B) match the login details forthe second wallet (Wallet B). If the login details match the logincredentials, then the login module 38 logs the second user device 20into the second wallet (Wallet B).

The login module 38 then provides the second user device 20 with accessto the hosted email module 46. The user of the second user device 20then enters the email address (email address A) of the user of the firstwallet (Wallet A) and an amount of bitcoin that the user of the seconduser device 20 wishes to transfer from the second wallet (Wallet B) tothe first wallet (Wallet A). The user of the second user device 20 thenuses the hosted email module 46 to send an email via the Internet 22 tothe first user device 18. As soon as the email is sent, a transfer(Transfer 5) is recorded within the second wallet (Wallet B). Becauseone of the Bitcoin addresses (Bitcoin address 4) has funds associatedtherewith, it can be charged for the transfer (Transfer 4). Within thesecond wallet (Wallet B) the transfer (Transfer 4) has the email address(email address A) to which the email has been sent and the amount inbitcoin associated therewith.

As indicated, the miner's fee that is paid by the first host computersystem 14 and the host fee that is charged for the transfer are zerobitcoin because the first wallet (Wallet A) is stored within the wallets42 of the first host computer system 14. The user of the first userdevice 18 receives the email indicating the transfer of bitcoin to theirwallet (Wallet A). A Bitcoin address (Bitcoin address 5) is recordedwithin the first wallet (Wallet A) for the transfer (Transfer 5)together with the identifier of the second wallet (Wallet B) from whichthe transfer has been made and the amount in bitcoin. The amount inbitcoin corresponding to the transfer (Transfer 4) in the second wallet(Wallet B) is the same as the amount in bitcoin as in the first wallet(Wallet A).

As illustrated by the next transfer (Transfer 6), the user of the secondwallet (Wallet B) can opt to send bitcoin to a Bitcoin address of thefirst wallet (Wallet A). The transfer (Transfer 6) is the same as thepreceding transfer (Transfer 5) in all other respects.

FIG. 42 shows a view that is displayed to the user of the second userdevice 20 in FIG. 1B in order to make the transfer from their wallet(Wallet B) to the first wallet (Wallet A). The view includes a field forthe user to enter the email address (email address A) and fields forentering either an amount in bitcoin (BTC) or an amount in a localcurrency (USD-United States Dollar). The exchange rate between bitcoinand the local currency is shown in the top left corner. The view alsoincludes a button “Send Money” which, when selected by the user,initiates the transfer of bitcoin.

FIG. 43 is a view that is displayed to the user indicating transactionsthat have been initiated or completed. The purchase of bitcoin discussedwith reference to FIGS. 35 to 37 is shown as “PENDING”. A block chainverification notice has to be broadcast by the miner computer system 28and be received by the first host computer system 14 in FIG. 1A before adetermination is made to change the marker “PENDING” to “COMPLETE”. Theother transactions representing transfers between the first and secondwallets (Wallet A and Wallet B) in FIG. 41 are shown as completedbecause they do not need block chain verification outside of the firsthost computer system 14. No block chain verification notice is thusrequired for these transactions to be marked “COMPLETE”. FIG. 44 shows aview that can be selected by the user by selecting a tab in the topmargin wherein the user is shown the Bitcoin addresses associated withtransactions that have been completed.

FIG. 45 illustrates a further transaction (Transfer 7) wherein bitcoinis transferred from the second wallet (Wallet B) to a third wallet(Wallet C) held by the second host computer system 16 in FIG. 1A. Theuser of the second user device 20 enters a bitcoin address (Bitcoinaddress 6) that is located in the third wallet (Wallet C) and an amountof bitcoin to be transferred to the third wallet (Wallet C). A transfer(Transfer 7) is recorded within the second wallet (Wallet B). Associatedwith the transfer (Transfer 7) are the Bitcoin address (Bitcoin address6), the amount in bitcoin that is being transferred and a miner's feethat is charged for the transfer and has to be paid by the first hostcomputer system 14 to the miner computer system 28 in FIG. 1A. No fee ischarged by the first host computer system 14 for a transfer to anotherBitcoin address.

When the user of the second user device 20 in FIG. 1A completes thepurchase, a transfer instruction is created and is broadcast via thehost node 30 to all remote nodes 32A-D within the Bitcoin network 12.The transfer instruction thus traverses the first node and the secondremote node 32B to reach the second host computer system 16. The secondhost computer system 16 and all other computer systems connected to theremote nodes 32A-D record the transfer (Transfer 7) with respect to theBitcoin addresses (Bitcoin address 4; Bitcoin address 6). The transfer(Transfer 7) has associated therewith the amount in bitcoin.

The transfer instruction that results in the transfer (Transfer 5) thusresults in no miner's fee being charged to and paid by the first hostcomputer system 14. No host fee is charged to the second wallet (WalletB) because the transfer (Transfer 7) is made to another wallet (WalletA) within the wallets 42 of the first host computer system 14. Bycontrast, the transfer instruction that results in the transfer(Transfer 7) representing the transfer to the Bitcoin address (Bitcoinaddress 6) in the third wallet (Wallet C) results in a miner's fee thatis paid by the first host computer system 14 to the miner computersystem 28. The miner computer system 28 is responsible for verifyingtransfers of bitcoin over the Bitcoin network 12. In the presentscenario, the miner computer system 28 verifies the transfer of bitcoinfrom the second wallet (Wallet B) to the third wallet (Wallet C).

Another transfer may comprise that bitcoin is sent to one of the nodes,e.g. node 32C. The node 32C could be a fourth user device which is ownedby the recipient of the bitcoin transfer having its own bitcoin address.

FIG. 46 illustrates components that are used for cold storage of valueof bitcoin, including a local storage 56, a local controller 58, a vault64, a splitter 66, one or more encryption algorithms 68 and 70 and anoffline distribution module 72.

The vault 64 has a Bitcoin address 80 with a private key 79. The privatekey 79 is, for purposes of illustration, shown as a nine digit sequenceof characters that are provided to the splitter 66. For purposes ofillustration, the splitter 66 splits the nine digits of the private key79 into seven overlapping codes (Codes 1 to 7). The encryption algorithm68 encrypts the first code (Code 1) into an encrypted code (EncryptedCode 1). In a similar manner, the second code (Code 2) is encrypted byan encryption algorithm (not shown) into an encrypted code (EncryptedCode 2). Each one of the seven codes is encrypted into a separateencrypted code. A separate key may be used for each one of seven codes.Alternatively, a separate encryption algorithm may be used for each oneof the seven codes.

Once all the codes have been encrypted, the offline distribution module72 transmits each one of the encrypted codes (Encrypted Code 1 to 7) toa separate location. The locations are remote locations that aregeographically separated from one another. The offline distributionmodule 72 may also be used to print one or more of the encrypted codesfor paper delivery to respective remote locations.

FIG. 47 illustrates functioning of the offline distribution module 72following distribution of the encrypted codes in FIG. 46 . The offlinedistribution module 72 removes the private keys 79 of the Bitcoinaddress 80 of the vault 64. The offline distribution module 72 alsoremoves the private key 79 of the Bitcoin address 80 within the localstorage 56.

As shown in FIG. 48 , a local register 60 includes a plurality ofwallets 42, one of which is shown. The wallet 42 has a plurality ofBitcoin addresses 74, 76 and 78 associated therewith. Each Bitcoinaddress 74, 76 and 78 has a respective value and a respective privatekey. The local controller 58 transfers the entire value of the Bitcoinaddresses 76 and 78 into the vault 64. The value relating to the Bitcoinaddress 74 is not transferred into the vault 64. The local controller 58calculates the total value of the Bitcoin addresses 76 and 78 that havebeen transferred into the vault 64 and records the total value in thelocal storage 56 in association with the Bitcoin address 80.

As shown in FIG. 49 , following removal of the value of the Bitcoinaddresses 76 and 78 within the wallet 42, the value of the Bitcoinaddresses 76 and 78 are only held within the vault 64 and the localstorage 56. The private key 79 is only held in a split and encryptedform at the distributed locations where the offline distribution module72 in FIG. 46 has distributed them to. Unless access can be gained tothe private key 79 that has now been split and distributed, it is notpossible to access the value of the Bitcoin addresses 76 and 78. It isnow possible for a user to which the wallet 42 is registered to use theBitcoin address 74 for transacting with another user via the walletmanagement module 44 in FIG. 1B. The Bitcoin addresses 76 and 78 are notusable by the wallet management module 44 for purposes of transactingwith another user at this time because their values, within the wallet42, have been removed.

FIG. 50 shows how the private keys of the vault 64 and the Bitcoinaddresses 76 and 78 that were removed in FIG. 46 are restored.Components that are provided for restoration include a plurality ofrestoration interfaces 82, 84 and 86, one or more decryption algorithms88, 90 and 92 and an assembler 94. The holder of the first encryptedcode (Encrypted Code 1) is called upon to enter the encrypted code intothe restoration interface 82. The restoration interface 82 may forexample be a web page with a field for entry of the first encryptedcode. Alternatively, the restoration interface 82 may be an applicationprogrammable interface (API) and the first encrypted code can be enteredinto the API with or without human involvement.

In the given example, the second, third, fifth and sixth encrypted codesare not received at this time. The fourth and seventh encrypted codesare received through the restoration interfaces 84 and 86, similar tothe first encrypted code.

The decryption algorithm 88 decrypts the first encrypted code (EncryptedCode 1) into the first code (Code 1). In the given example, thedecryption algorithms 90 and 92 decrypt the fourth and seventh encryptedcodes (Encrypted Code 4 and Encrypted Code 7) into the fourth andseventh codes (Code 4 and Code 7) respectively. In the given example,three codes are the minimum number of codes that are required in orderto reassemble the private key 79. The minimum number of codes requiredfor reassembly in FIG. 48 is thus less than the total number of codesinto which the private key 79 has been split in FIG. 46 . The assembler94 assembles the private key 79 when the minimum number of codes hasbeen received.

The private key 79 of the Bitcoin address 80 in the local storage 56 isused to access the vault 64. The local controller 58 then restores theprivate key 79 from the local storage into the vault for associationwith the Bitcoin address. The block chain will know whether the privatekey 79 that has been restored is the same private key 79 that waspreviously associated with the Bitcoin address. Only upon confirmationfrom the block chain will it be possible to transfer the value from thevault 64 to the local register 60.

The local controller 58 restores the respective value of the Bitcoinaddresses 76 and 78 in the vault 64 to the Bitcoin addresses 76 and 78in the wallet 42. Because the values have been restored to the Bitcoinaddresses 76 and 78 in the wallet 42 they are usable for transactingwith other users.

FIGS. 51 a to 51 d illustrate the use of a “hot” wallet in combinationwith “cold storage”. As shown in FIG. 51 a , the wallet 42 has theBitcoin addresses 74, 76, 78 and a further Bitcoin address 98, eachhaving a respective value associated therewith. The local storage 56 hasfirst, second and third Bitcoin addresses 80A to 80C for first, secondand third vaults 64A to 64C, respectively. The Bitcoin addresses 76 and78 form a first transfer set that is selected for cold storage. TheBitcoin addresses 74 and 98 form a first transacting set. The values ofthe Bitcoin addresses 76 and 78 of the first transfer set aretransferred into the first vault 64A, as represented by “Value” in thefirst vault 64A.

The private key of the Bitcoin address 80A of the first vault 64A isthen transferred into the local storage 56 and is stored in associationwith the first Bitcoin address 80A. As hereinbefore described withreference to FIG. 46 , the private key of the Bitcoin address 80A in thelocal storage 56 is then split and distributed. As hereinbeforedescribed with reference to FIGS. 47 and 48 , the private keys of theBitcoin address 80 and the value of the Bitcoin address 76 and 78 arethen removed. It is then not possible for a user of the wallet 42 to usethe Bitcoin address 76 and 78 for transacting with another user. Theuser can still transact with another user using the Bitcoin addresses 74and 98 of the first transacting set because their values are stillassociated with them within the wallet 42.

FIG. 51 b shows the Bitcoin addresses 76 and 78 within the wallet 42with their values removed and the Bitcoin address 80A within the localstorage 56 with its private key removed. The private key of the Bitcoinaddress 80B of second vault 64B is transferred into the local storage 56and associated with the second Bitcoin address 80B within the localstorage 56. The private key of the second Bitcoin address 80B in thelocal storage 56 is split and distributed and then removed from thelocal storage 56. The Bitcoin address 98 is selected as part of a secondtransfer set of one or more Bitcoin addresses. The value of the Bitcoinaddress 98 is transferred from the wallet 42 into the second vault 64B,as represented by “Value” in the second vault 64B. The value of theBitcoin address 98 within the wallet 42 is thus removed. The user of thewallet 42 can now not use the Bitcoin address 98 for purposes oftransacting with another user because the value of the Bitcoin address98 has been removed from the wallet 42. The Bitcoin address 74 formspart of a second transacting set that may include one or more Bitcoinaddresses that can be used for transacting with another user.

FIG. 51 c shows the Bitcoin address 98 having its value removed and thesecond Bitcoin address 80B within the local storage 56 having itsprivate key removed. At this stage it may be desirable to restore thevalues of the Bitcoin addresses 76 and 78. The private key of the firstBitcoin address 80A within the local storage 56 is restored to the vault64 as hereinbefore described with reference to FIG. 50 . The respectivevalues of the Bitcoin addresses 76 and 78 are then restored from thevault 64A to the Bitcoin addresses 76 and 78 in the wallet 42. Becausethe values of the Bitcoin addresses 76 and 78 are restored within thewallet 42, the Bitcoin addresses 76 and 78 of the first transfer setcan, at least for the time being, be used together with the secondtransacting set for transacting with another user.

The same Bitcoin addresses 74, 76, 78 and 98 that are shown in FIG. 51 aare also shown in FIGS. 51 b and 51 c . It should be understood that theBitcoin addresses may change between the figures. The system allows forthe value that was previously associated with one Bitcoin address to berestored to another Bitcoin address if necessary.

As shown in FIG. 51 d , the first vault 64A is discarded after the valuetherein is restored. The first Bitcoin address 80A within the localstorage 56 and the first vault 64A will never be used again.

The Bitcoin address 78 is selected as a third transfer set. The privatekey of the Bitcoin address 80C of the third vault 64C is transferredinto the local storage 56 and stored in association with a third Bitcoinaddress 80C. The value of the Bitcoin address 78 is transferred from thewallet 42 to the third vault 64C. The user of the wallet 42 can now notuse the Bitcoin address 78 for transacting with another user. TheBitcoin address 76 forms part of a third transacting set that couldinclude one or more Bitcoin addresses. The Bitcoin address 76 can beused by the user of the wallet 42 for transacting with another userbecause the value of the Bitcoin address 76 is associated therewithwithin the wallet 42. The second and third transacting sets can thus beused by the user for transacting with another user. The second and thirdtransfer sets are unusable for transacting with another user becausetheir private keys have been removed.

FIG. 52 illustrates how the local controller 58 (see FIGS. 46 to 50 )maintains transaction sets of a wallet 42 within a target range 101.Should all the Bitcoin addresses of the wallet 42 have values associatedtherewith, the wallet 42 is said to be 100% hot and 0% cold. If all theBitcoin addresses in a wallet 42 have their values removed, the wallet42 is to be 0% hot and 100% cold. The target range 101 for the totalbitcoin value within the wallet may for example be 5% to 10% hot. At102, the values of the first transacting set are transferred from thewallet 42 as described with reference to FIG. 51 a . At 104, the usertransacts with some of the Bitcoin addresses and the total value withinthe wallet 42 of the Bitcoin addresses that are hot is reduced. At 106,the values of the second transfer set are removed from the wallet 42 asdescribed with reference to Figure sib. At 108, the values of the firsttransfer set are restored as described with reference to FIG. 51 c . At110, the user transacts and gains further Bitcoin addresses foradditional value within their wallet 42. At 112, values of the thirdtransfer set are transferred out of the wallet 42 as described withreference to Figure aid. It can thus be seen that the local controller58 in FIGS. 46 to 50 adjusts the total value of bitcoin that is notwithin the target range 101. The local controller 58 typicallyrecalculates the hot/cold value ratio of each wallet on a daily basisand automatically adjusts the value to the target range 101.

FIG. 53 illustrates the use of an intermediate hot wallet 114 that isused to collect bitcoin values from a plurality of wallets 42A to C. Thewallet 42A is that same as the wallet 42 as described above. The wallet42B has bitcoin addresses 120, 122, 124 and 126 associated therewith.The wallet 42C has bitcoin addresses 128, 130, 132 and 134 associatedtherewith. Each wallet 42A, B or C is held within the target range 101in FIG. 50 . The values of the bitcoin addresses 76, 78, 120, 122, 128and 130 are identified for transfer to the vault 64A and are firsttransferred or “swept” to the intermediate hot wallet 114 from wherethey are transferred to the vault 64A.

FIG. 54 illustrates a network environment 136 that, in addition to thefirst host computer system 14, includes a customer computer system 138and a merchant computer system 140 that are connected to one anotherover the Internet 142. The merchant computer system 140 has an onlinestore 144 and a website 146. The customer computer system 138 has abrowser 148. A customer at the customer computer system 138 can use thebrowser 148 to access the website 136 over the Internet 142. The website136 is then displayed on the browser 148. The website 136 allows for thecustomer to make purchase on the online store 144. The customer may, forexample, purchase real goods, virtual goods or services from the onlinestore 144.

The first host computer system 14 includes an application programmableinterface (API) 150, a reference code generator 152, a transactionprocessor 154, a currency converter 156 and merchant, and customer andhost wallets 158, 160 and 162. The wallets 158, 160 and 162 may be ofthe kind as hereinbefore described.

As shown in FIG. 55 , the customer is shown a shopping cart with severalpayment options, including “Pay with Credit Card” and “Pay withbitcoin.” Prior to being displayed the shopping cart, the customer hastraveled through the shopping flow of the merchant computer system 140,has selected one or more items to be purchased and has selected ashopping or checkout cart, which causes the display of the view shown inFIG. 55 . When the user selects the button “Pay with bitcoin” themerchant computer system 140, at 166, transmits an API call to the firsthost computer system 14. The API call includes a request for payment.The request for payment includes an amount in a currency, in the presentexample $14.00, an order name (usually a number), order descriptions(usually items in the checkout cart in a single line-item entryseparated by commas), and a success uniform resource locater (URL) ifdesired (a page to which the customer is redirected at checkout if theorder completes).

When the first host computer system 14 receives the API call at 166, thereference code generator 152 generates a unique reference code for thespecific order. The reference code is thus uniquely generated for eachAPI call. The first host computer system 14 then stores the referencecode in its database. At 168, the first host computer system 14 respondsto the API call received at 166 to transmit the reference code to themerchant computer system 140. The merchant computer system 140 thenreceives the reference code as reference code 170. The merchant computersystem 140 stores the reference code as reference code 172 within itsaccounting system 173 and associates the reference code 172 with theparticular order shown in the shopping cart. The merchant computersystem 140 also creates a URL 174. The reference code 170 is used as areference code 176 within the URL 174 when the URL 174 is created.

The first host computer system 14 creates a URL 180 that includes areference code 182. The reference code 182 and the reference code 176are the same.

The merchant computer system 140 at 178 redirects the browser 148 (FIG.54 ) using the URL 174. The browser is then redirected to the URL 180 ofthe first host computer system 14.

The URL 180 may, for example, be the URL of a landing page, iFrame ormodal window 184. The landing page, iFrame or modal window 184 presentscheckout options to the customer, including to pay with the customerwallet 160 if one exists, to pay with bitcoin using an external account,or to create a wallet at the first host computer system 14 for purposesof completing the purchase. In a different embodiment, instead of beingautomatically redirected by the merchant computer system 140 to thefirst computer system 14, the customer may be redirected to a differentpage at the merchant computer system 140, which will then contain a linkfor the customer to navigate to the landing page, iFrame or modal window184.

When the browser 148 of the customer computer system 138 downloads thelanding page, iFrame or modal window 184, the first host computer system14 automatically generates a bitcoin address 186 specifically for thecustomer's order within the merchant wallet 158.

The first host computer system 14 also creates a bitcoin price based onthe price in local currency and displays the bitcoin price within thelanding page/iFrame or modal window 184 within the browser 148. Thegraph illustrates a fluctuating bitcoin to dollar exchange rate. In thepresent example, the exchange rate at minute 0 is used at 190 tocalculate the exchange rate. The local currency price in the presentexample is $14.00 which gives a bitcoin price of 0.02 BTC. The price of0.02 BTC that is based on the exchange rate at minute 0 is maintainedfor a select period of time, in the present example 10 minutes, beforeit resets. The customer may not wish to immediately send the bitcoin,but may do so at any time before the price resets at minute 10 and theexchange rate remains locked in and the bitcoin price thus remainsunchanged at 0.02 BTC during that time.

An option is displayed to the customer to send the bitcoin together withthe price in bitcoin at minute 0. When the customer selects the optionto send the bitcoin, the customer computer system 138 transmits a sendinstruction to the first host computer system 14. The first hostcomputer system 14 receives and at 192 detects the send instruction. Thecustomer may for example request to send bitcoin from the customerwallet 160 or via another path as hereinbefore described. The first hostcomputer system 14 responds to the send instruction to transmit an orderstatus message that includes the reference code for the transaction tothe merchant computer system 140. The merchant computer system 140receives the reference code as reference code 194. The merchant computersystem 140 then matches the reference code 194 to the reference code 172within its accounting system 173 and marks the transaction as complete.

In the present example, the send instruction is processed at minute 6.The exchange rate has in the present example changed between minute 0and minute 6. Should the bitcoin price of 0.02 BTC be converted to localcurrency at this time it would result in a different price in localcurrency than the original transaction. The difference between theoriginal price at minute 0 and minute 6 represents either a loss or again for the first host computer system 14. The loss and gain are usedto calculate bitcoin replacement costs on a periodic basis.

In the present example the first computer system 14 responds to the sendinstruction received at 192 to transmit 0.02 BTC to the bitcoin address186 associated with the merchant wallet 158. When the bitcoin reachesthe bitcoin address 186, the first host computer system 14, at 196,immediately purchases the bitcoin from the merchant wallet 158,resulting in a transfer of the bitcoin from the merchant wallet 158 tothe host wallet 162. The first host computer system 14 purchases thebitcoin at the exchange rate locked in at minute 0.

Periodically, for example daily, the first host computer system 14calculates the total amount of bitcoin sold by the merchant wallet 158that day at the locked in prices. The first host computer system 14 hasa bank transfer module 200 that, at 202, transmits a payment instructionto a bank for the first host computer system 14. The bank for the firsthost computer system 14 communicates with a bank of the merchantcomputer system 140. Such communication, at 204, results in transfer offunds from a host bank account 206 to a merchant bank account 208.

In the present example, the customer uses their customer wallet 160 totransfer funds in the form of bitcoin from the customer wallet 160 tothe merchant wallet 158 and the funds are then transferred in the formof bitcoin from the merchant wallet 158 to the host wallet 162. Inanother embodiment, the merchant wallet 158 can be bypassed such thatthe customer transfers funds in the form of bitcoin from the customerwallet 160 directly into the host wallet 162. In either embodiment thefunds that are received by the host wallet 162 are used as a basis forcalculating the amount of money in local currency that is transferred bythe bank transfer module 200, minus a fee that is held back by the firsthost computer system 14 for purposes of processing the transaction.

Referring again to FIG. 54 , the API 150 sends and receives API calls at166, 168 and the order status message in response to the sendinstruction 192 in FIG. 55 . The currency converter 156 is responsiblefor receiving and maintaining exchange rate for bitcoin to localcurrency and for calculating the bitcoin price based on the localcurrency price and the exchange rate at any particular moment in time.The transaction processor 154 is responsible for transferring funds inthe form of bitcoin or local currency from one wallet or bank account toanother.

In the embodiment above, the exchange rate is locked in when thecustomer accesses the landing page, iFrame or modal window 184 and islocked for ten minutes. In such an embodiment the merchants typicallycreate a payment “button” or using the API, specifically the button API,of the first host computer system. Selection of the button by thecustomer results from the process described above wherein the customeris directed to the landing page, iFrame or modal window 184. Such abutton does not need to look any different from the merchant's standard“submit order” button and the button API is linked into the standard“submit order” button of the merchant computer system 140, which whenclicked will direct the user directly to the landing page, iFrame ormodal window 184. When the user hits the landing page the exchange rateis locked. The merchant “order” is thus not created—i.e., with locked inexchange rate—until the user clicks the payment button to land on ourlanding page.

Another embodiment is used in white-label solutions. In these instances,the user is not directed away from the merchant domain to a landing pagesuch as the landing page, frame or modal window 184 to complete payment.Instead, the checkout information that would have otherwise shown on thelanding page is displayed inside the merchant's browser checkout tool.Such an embodiment may not allow “one-click” checkout for users who arealready signed into their customer wallet 160; a user can only pay by QRcode scan and/or manual entry of a bitcoin address. In order for thisinformation to be incorporated into the merchant's webpage, the merchant(1) creates a “button” when they post an item for sale to the website(the button includes the price in local currency, but not a bitcoinprice and can be created at any time—e.g., weeks before a purchase); and(2) when the customer wishes to pay, e.g., by clicking on a “PlaceOrder” button, the merchant computer system 140 sends an API call to thefirst host computer system 14 which responds by sending back a locked inexchange rate, which again is good for ten minutes. The merchant thendisplays the checkout information to the user—i.e., the proper bitcoinaddress and amount. This embodiment differs in that: (1) the “order” iscreated earlier in time, and the exchange rate follows on as a separateAPI call; and (2) the checkout information is hosted within themerchant's domain.

FIG. 56 illustrates a method of managing bitcoin wherein a personalvault is created for a user. At 220, the user already has an accountthat the user can log into using a website. The account has a firstemail (electronic communication) address. The first email address may bejohn.smith@gmail.com. The account also has a phone number associatedtherewith and one or more wallets as herein before described. Thewebsite provides the user with a link to create a vault. At 222, theuser is provided an option to create an individual vault or a groupvault. In an individual vault the user will be required to respond totwo emails in order to transfer bitcoin out of the vault. In a groupvault multiple users are required to respond to emails in order for theuser of the account represented at 220 to transfer the bitcoin out ofthe vault.

The user may, at 224, select an individual vault. At 226, an interfaceof the website is presented with a field for the user to enter a secondemail address. The second email address may for example bejohn.smith@hotmail.com. The user enters the second email address andselects a button to transmit the second email address from their deviceto the first host computer system 14. When the first host computersystem 14 receives the second email address, the first host computersystem 14, at 228, transmits a confirmation email with a confirmationlink to the second email address. The purpose of the email that istransmitted at 228 is to confirm the second email address. At 230, thefirst host computer system 14 waits for the confirmation. The first hostcomputer system 14 does not proceed to create a vault if theconfirmation is not received. At 232, the user selects the confirmationlink, which causes transmission of the confirmation from the device ofthe user to the first host computer system 14. When the first hostcomputer system 14 receives the confirmation, the first host computersystem 14 proceeds at 232 to register a vault within the same accountshown at 220. The vault includes the first and second email addresses.The vault also includes the phone number of the account.

At 236, the first host computer system 14 updates the interface of thewebsite to provide a summary. The summary indicates that, in order totransfer bitcoin out of the vault, emails will be sent to the first andsecond email addresses, and the summary includes the phone numberassociated with the vault and that the bitcoin will not be transferredout of the vault for a period of 48 hours. The interface also includes a“Finish” button. When the user selects the “Finish” button, the browserused by the user, at 238, lands in the vault. The vault looks like awallet, but has a security feature that limits transfer of bitcoin outof the vault.

The user may, at 240, select a group vault. At 242, the first hostcomputer system 14 provides the user with an option whether 2 out of 3confirmations are required or 3 out of 5 confirmations are required. Ifthe user selects that 2 out of 3 confirmations are required, then theuser is required to enter two email addresses in addition to their ownemail address shown in the account at 220. If the user selects that 3out of 5 confirmations are required, then the user is required to enterfour email addresses in addition to their email address shown in theaccount at 220.

At 224, the interface of the website is updated to request theadditional email addresses from the user. The interface typicallyincludes fields for the user to enter the additional email addresses.

At 246, the first host computer system 14 makes a determination whetherall the additional email addresses are associated with other accountswithin the first host computer system 14. If all the additional emailaddresses are associated with other accounts, then the first hostcomputer system 14 proceeds at 248 to update the account represented at220 with a vault that includes the first email address, the additionalemail addresses and the phone number associated therewith.

If one or more of the additional email addresses are not associated withany accounts within the first host computer system 14, then the firsthost computer system 14, at 250, transmits an email to the additionalemail address that is not associated with an account to create anaccount. A user receiving the email transmitted at 250 can proceed at252 to create an account with the second email address associated withthe account. Only after all the additional email addresses areassociated with accounts does the first host computer system 14, at 248,proceed to register a vault.

The first host computer system 14 then at 254 provides a summary throughthe interface of the website. The summary shows that in order totransfer bitcoin, emails will be sent to and confirmations will berequired from the first email address and the minimum of the additionalemail addresses. The summary also includes the phone number associatedwith the vault and states the waiting period before the bitcoin istransferred. The website also includes a “Finish” button which, whenselected by the user at 238, lands the browser used by the user in thevault.

FIG. 57 illustrates how bitcoin is transferred into and out of thevault. At 260, the user first transfers bitcoin into the vault. The usermay transfer the bitcoin from one of their wallets associated with theiraccount into the vault or may transfer the bitcoin into the vault froman external source. The bitcoin is then stored within the vault.

At 264, the first host computer system 14 determines whether thetwo-factor code is correct. If the two-factor code is incorrect, thenthe first host computer system 14, at 266, makes no change to thewebsite interface.

At 264, the first host computer system 14 determines whether thetwo-factor code is correct. If the two-factor code is incorrect, thenthe first host computer system 14, at 266, makes no change to thewebsite interface.

If the determination is made at 264 that the two-factor code is correct,then the first host computer system 14 proceeds at 268 to transmit allemails. In the case of an individual vault, emails are sent to the firstand second email addresses represented in the account at 234 in FIG. 56. In the case of a group vault, then emails are transmitted to the firstemail address and the additional email addresses represented in theaccount at 248 in FIG. 56 . At 270, the first host computer system 14updates the transaction list within the website to represent thatapproval is being awaited.

Each one of the emails has a respective link that can be selected by arecipient. At 272, a user receiving one of the emails reacts to theemail by clicking on the link. Selection of the link causes anauthorization instruction to be transmitted from a device of therespective user to the first host computer system 14. At 274, the firsthost computer system 14 detects the authorization instruction receivedin response to one of the emails that have been transmitted. Selectionof the link on the email opens a browser on the recipient's device anddisplays a message that the authorization has been successfullyapproved.

At 276, the recipient of a second one of the emails reacts to the emailby clicking the link on the second email to send an authorizationinstruction. At 278, the first host computer system 14 detects theauthorization instruction transmitted at 276 and displays a web pageindicating that the authorization has been successfully approved.

When all the predetermined approvals have been received, the first hostcomputer system 14 proceeds, at 280, to update the transaction list toindicate that clearance is being awaited. At 282, only if the minimumnumber of approvals are detected, the first host computer system 14starts a countdown timer and sends an email to the user of the accountinforming the user that the bitcoin will be transferred after 48 hours.Block 284 represents the transmission of three email reminders to theuser during the 48 hour waiting period. Each email includes the timeremaining before the 48 hours will have elapsed and the amount ofbitcoin that will be transferred out of the vault. Each email alsoincludes a “Cancel” link. The user can select the “Cancel” link, whichcaused the transmission of a cancel instruction to the first hostcomputer system 14. The cancel instruction will cancel the transfer ofthe bitcoin and therefore the request that was transmitted at 262.

At 286, the first host computer system 14 detects an end of the timeperiod. The first host computer system 14 then transfers the amount ofbitcoin out of the vault and in to the destination selected at 262. Thefirst host computer system 14 also updates the transaction list on thewebsite to indicate that the transaction has been cleared.

FIG. 58 illustrates components of the first host computer system 14 thatare used for carrying out the method shown in FIGS. 56 and 57 ,including an account 290 of a user, a website 292, a vault establishmentwizard 294, a vault management module 296 and the transaction processor154 hereinbefore described. The vault establishment wizard 294 isprogrammed to execute the establishment of the vault as described withreference to FIG. 56 . The vault management module 296 is programmed tomanage the vault as described with reference to FIG. 57 . A useraccesses the website 292 and downloads an interface so as to interactvia the website 292 with the vault establishment wizard 294 and thevault management module 296. The vault management module 296 providesinstructions to the transaction processor 154 to transfer the bitcoinout of the vault.

FIG. 59 shows the email that is transmitted at 228 in FIG. 56 . FIG. 60shows an interface of the website 292 in FIG. 58 when the user requestsa transfer out of a vault at 262 in FIG. 57 . FIGS. 61 and 62 show theemails that are transmitted at 268 in FIG. 57 . FIG. 63 shows theinterface of the website after the minimum number of approvals arereceived and the countdown clock has been started at 282 in FIG. 57 .

Email addresses are used in the exemplary embodiment for electroniccommunication via email. Another embodiment may make use of otherelectronic communication addresses such as text messages to phonenumbers or messages through social networks. Such messages may includeauthorization links as described or authorization may be obtainedotherwise such as sending a reply message and including “Y” or “Yes” inthe reply message. A secondary electronic communication address may bean individual address or a group address.

FIG. 64 illustrates the establishment of a user-controlled vault. At302, a user at the first user device 18 transmits a request for auser-controlled vault to the first host computer system 14. At 304, thefirst host computer system 14 responds to the request to initiate keygeneration.

At 306, the first host computer system 14 generates a seed for a masterkey. At 308, the first host computer system 14 uses the seed generatedat 306 to generate a master key. The master key includes a public keyfor the master key and a private key for the master key. At 310, thefirst host computer system 14 stores the public key for the master keyand, at 312, stores the private key for the master key. The combinationof the keys stored at 310 and 312 form a master key set 314.

A generation script 316 initially resides on the first host computersystem 14. At 318, the first host computer system 14 transmits thegeneration script 316 to the first user device 18. The first user device18 receives the generation script 316, which is executable on the firstuser device 18.

At 320, the generation script 316 generates a seed for a shared key. Thegeneration script 316 includes a key generation algorithm. At 321, thekey generation algorithm uses the seed generated at 320 to generate ashared key. The shared key includes a public key and a private key.

The private key for the shared key is shown at 322. The generationscript 316 also includes an interface with a field for a user to enter apassword via a keyboard. At 324, the user enters the password into theinterface. The generation script 316 also includes an encryptionalgorithm. At 326, the encryption algorithm generates an encrypted seedfrom the private key shown at 322 and the password entered at 324.

At 328 and 330, the key generation algorithm and encryption algorithmrespectively send the public key of the shared key and the encryptedseed to the first host computer system 14. At 332, the first hostcomputer system 14 stores the public key for the shared key and, at 334,stores the encrypted seed for the shared key. The public key stored at332 and the encrypted seed 334 can be viewed as a shared key set 336.Additionally, the private key shown at 322 forms part of the shared keyset 336. The private key shown at 322 is however never transmitted fromthe first user device 18 to the first host computer system 14.

At 338, the generation script 316 further generates a seed for a userkey. At 340, the key generation algorithm uses the seed generated at 338to generate a user key. The user key includes a public key for the userkey and a private key for the user key. At 342, the key generationalgorithm transmits only the public key for the user key to the firsthost computer system 14. At 344, the first host computer system 14stores the public key for the user key.

At 346, the generation script 316 displays the private key for the userkey to the user. The user can then store the private key manually on thefirst user device 18 or write it down for later use. The first userdevice 18 never transmits the private key displayed at 346 to the firsthost computer system 14. The combination of the public key for the userkey stored at 344 and the private key for the user key displayed at 346form a user key set 348.

FIG. 65 illustrates how the user-controlled vault is used by the user.At 360, the user of the first user device 18 creates and transmits arequest to transact using bitcoin of the user-controlled vault. At 362,the request reaches the transaction processor 154 hereinbeforedescribed. At 364, the first host computer system 14 creates anauthorization for the transaction.

The master key set 312, shared key set 336 and user key set 334 arereplicated from FIG. 64 and the same reference numerals apply. It shouldhowever be understood that these keys are stored or displayed in FIG. 64and that the stored and displayed keys are not stored but only retrievedand used in FIG. 65 .

At 366, the first host computer system 14 signs the authorization 364with the private key for the master key. Such signature then allows foran authorization to transact at 368. As shown in 370, two out of threeauthorizations are required in order to transact and the authorizationprovided at 368 may form one of the two authorizations.

A verification script 372 initially resides on the first host computersystem 14. At 373, the first host computer system 14 initiates keycollection by transmitting the verification script 372 to the first userdevice 18. The verification script 372 is executable on the first userdevice 18. Both the generation script 316 in FIG. 64 and theverification script 372 in FIG. 65 may be in the form of JavaScript™that is executable by a browser on the first user device 18.

The encrypted seed stored at 334 on the first host computer system 14 istransmitted together with the verification script 372 and is received at374 by the first user device 18. The verification script 372 furtherincludes an interface with a field for entering a password. At 376, theuser enters the same password that the user entered at 324 in FIG. 64into the field provided in the interface using a keyboard. Theverification script 372 further includes a decryption algorithm. At 378,the decryption algorithm uses the encrypted seed and the password todecrypt the encrypted seed and obtain the private key. The encryption at326 in FIG. 64 and decryption at 378 in FIG. 65 may follow the BIP38protocol which is commonly understood by those skilled in the art ofbitcoin encryption.

The authorization 364 is transmitted together with the verificationscript 372 to the first user device 18. The verification script 372further has a signature algorithm. At 380, the signature algorithm signsthe authorization with the private key. The signature algorithm thentransmits the signed authorization (together with the signature) to thefirst host computer system 14.

The first host computer system 14 has a verification module. As will becommonly understood as those skilled in the art, a verification moduleis an algorithm that verifies a signature that was created with aprivate key using a public key. At 382, the verification module verifiesthe signature using the same public key stored at 332 for the shared keyin the shared key set 336 that also includes the encrypted seed storedat 334. At 384, the verification module determines whether the signatureis correct. If the signature is not correct, then the first computersystem 14 returns to 374 where the encrypted key is received and theuser enters a password. If, at 384, a determination is made that thesignature is correct, then the first host computer system 14 proceeds to386 to provide an authorization due to the signature being correct. Theauthorization at 386 may be one of the authorizations required at 370 inorder to authorize the transaction.

The verification script 372 further includes an interface for enteringthe private key of the user key that was previously displayed at 346 tothe user. At 390, the user enters the private key into the fieldprovided therefor. At 392, a signature algorithm forming part of theverification script 372 signs the authorization with the private keythat has been entered by the user. The signature algorithm thentransmits the signed authorization (together with the signature) to thefirst host computer system 14. At 394, a verification module verifiesthe signature using the public key that was stored at 344. At 396, theverification module determines whether the signature is correct. If thesignature is incorrect, then the first host computer system 14 instructsthe verification script 372 to return to 390 where the user is againasked for the private key for the user key. If the signature is correct,then the first host computer system 14 proceeds to 398 to provide anauthorization for the transaction due to the signature being correct.The authorization provided at 398 may be one of the authorizationsrequired at 370.

What should be noted this time is that the password entered at 376 isnever transmitted to the first host computer system 14. Similarly, theprivate key entered at 390 is never transmitted to the first hostcomputer system 14. The user's control over the password and private keyeffectively disallows the transaction from being processed outside ofthe user's control.

After two out of the three authorizations have been received at 370, thefirst host computer system 14 proceeds at 400 to authorize thetransaction with the transaction processor 154.

FIG. 66 illustrates an address generator 402 that is used to generateaddresses such as the bitcoin address that are used for the transactionrequested at 360 in FIG. 65 . A master key seed 404, shared key seed 406and user key seed 408 are generated. The master key seed 404 is used togenerate a master public key 410 and a master private key 412. Theshared key seed 406 is used to generate a shared public key 414 and ashared private key 416. The user key seed 408 is used to generate a userpublic key 418 and user private key 420.

Each one of the keys 410 to 420 may be used to generate child keys M/0,M/1. The shared keys at each level may then be combined to generate anaddress. For example, the M/0 keys of the master public key 410, sharedpublic key 414 and user public key 418 may be used to generate anaddress (Address 0). The M/0 level may for example be the public keysstored at 310, 332 and 334 in FIG. 64 . The address (Address 0) may forexample be the bitcoin address for the transaction. Similarly, the M/1level keys of the master public key 410, shared public key 414 and userpublic key 418 may be used to generate another address (Address 1). Thefurther addresses may be generated to create further bitcoin addressesof for other purposes.

FIG. 67 of the accompanying drawings illustrates the first host computersystem 14, a partner computer system 422 and a receiver computer system424. The receiver computer system 424 includes a receiver browser 426.The partner computer system 422 has a website, in the present example ablog with a blog post 428 that has a blog post URL 430. At 432, a userof the receiver computer system 424 uses the receiver browser 426 tocreate the blog post 428.

The first host computer system 14 has a wallet in the form of receiveraccount 434, an embedded code generator and a button ID generator 438.At 440, the user of the receiver computer system 424 creates thereceiver account 434. The receiver account 434 has login details 442 anda receiver account identifier (ID) 444. At 446, the user of the receivercomputer system 424 logs into the receiver account 434 and enters theblog post URL 430 through the user interface 36 (FIG. 1B). The blog postURL 430 is then stored in association with the particular receiveraccount 434 with the wallet management module 44 (FIG. 1B). At 448, thefirst host computer system 14 provides the blog post URL 430 to theembedded code generator and button ID generator 438. The embedded codegenerator 438 then generates an embedded code 450 and, at 452, transmitsthe embedded code 450 to the receiver browser 426. The embedded code 450includes the blog post URL 430, receiver account ID 444 and a startupcaller 454.

The blog post 428 on the partner computer system 422 has a frame forpasting the embedded code 450 due to prior agreement between operatorsof the first host computer system 14 and the partner computer system422. At 456, the user of the receiver computer system 424 copies theembedded code 450 received at 452 and pastes the embedded code 450 intothe frame of the blog post 428. The embedded code 450 is then embeddedand forms part of the HyperText Markup Language (HTML) of the blog post428.

A blog post 428 is used herein to describe the invention by way ofexample. It should however be understood that the invention may havebroader application. A URL of a page may for example have a video, songor news article. Such a page will typically have a frame for pasting theembedded code 450. Alternatively, media content such as a video may nothave a separate frame for pasting the embedded code. Instead, anothermanner of activating payment features of the invention may be provided,such as a separate URL link, voice activation, detection of humangestures of a user, etc.

The button ID generator (see 438) generates a unique button ID. At 458,the button ID generator stores the button ID as button ID 460 within adata store of the first host computer system 14. At 462, the button IDgenerator 438 stores the button ID 460 in association with theparticular receiver account ID 444 and particular blog post URL 430.Multiple receiver accounts may exist within the first host computersystem 14. In addition, a receiver account may have multiple blog postURL's associated therewith. Each pair of a respective receiver accountID and respective blog post URL have a unique button ID.

FIG. 68 shows the first host computer system 14, the partner computersystem 422 and a sender computer system 464. The sender computer system464 has a sender browser (not shown). At 466, the sender browserdownloads the blog post 428 from the partner computer system 422. Thestartup caller 454 is a script, e.g. JavaScript®, that automaticallyexecutes on the sender computer system 464. At 470, the startup caller454 retrieves all sender cookies 472 on the sender computer system 464.The startup caller 454, at 474, transmits a startup call to the firsthost computer system 14. The startup call includes the cookies 472, theblog post URL 430 and the receiver account ID 444.

The first host computer system 14 includes a startup call responder 476that receives the startup call 474. The startup call responder 476, at478, uses the blog post URL 430 and receiver account ID 444 received inthe startup call 474 to identify the particular button ID 460.

The button ID 460 in storage may have bits 480 representing all paymentsmade in association with the button ID 460. At 482, the startup callresponder 476 retrieves the bits 480 associated with the button ID 460from the data store.

At 483, the startup call responder 476 transmits a startup call responseto the sender computer system 464. The startup call response transmittedat 483 is in response to the startup call received at 474. The startupcall response includes a button 484, the bits 480, a session script 486and the button ID 460. A display 490 of the sender computer system 464displays the blog post 428. The embedded code 450 has added the button484 and the bits 480 to the blog post 428. The button 484 is atwo-dimensional button that is selectable by a user of the sendercomputer system 464. The session script 486 is associated with thebutton 484 so as to be executable when the user selects the button 484.

The embedded code 450, at 491, stores the button ID 460 within thesender cookies 472. The button ID 460 stored within the sender cookies472 can now be used to identify the button ID 460 within the first hostcomputer system 14.

In FIG. 69 , the user has selected the button 484 which, at 492,initiates the session script 486. The session script 486, at 494,retrieves the sender cookies 472 and, at 496, makes a session call tothe first host computer system 14. The session call 496 includes thecookies 472.

The first host computer system 14 includes a session responder 498 thatreceives the session call 496. At 500, the session responder 498 checksall data for the button ID 460 that has been received in the sessioncall 496. The data associated with the button ID 460 may include abitcoin address 502, although no bitcoin address may be included withinthe cookies 472 of the session call 496. At 504, the session responder498 determines whether a bitcoin address was received in the cookies 472of the session call 496. If no bitcoin address was received, the firsthost computer system 14 executes a bitcoin address generator 506. Thebitcoin address generator 506 then generates a bitcoin address and, at508, stores the bitcoin address in association with the button ID 460.The newly saved bitcoin address is represented as bitcoin address 510.At 512, the session responder 498 transmits the bitcoin address 510 thathas been generated by the bitcoin address generator 506 to the sendercomputer system 464. At 514, the session script 486 stores the bitcoinaddress 510 in association with the button ID 460 within the sendercookies 472. Upon a browser refresh, the process started at 466 in FIG.68 is restarted and all cookies are stored from earlier browser sessionsare collected and transmitted by the startup caller 454.

At 516, the session responder 498 determines whether the sender computersystem 464 is signed into a sender account. The determination is madebased on whether a signed-in cookie is found among the cookiestransmitted in the session call 496. If no signed-in cookie is found,then the session responder 498 proceeds to 518. At 518, the sessionresponder 498 sends a sign-in panel 520, a sign-in script 522, a listencode 524, a third party payment script 526, and a pull code 528 to thesender computer system 464. The session script 486 creates an overlaywindow that includes the sign-in panel 520 with a sign-in button 530having the sign-in script 522 associated therewith. The user can selectthe sign-in button 530 which, at 532, initiates the sign-in script 522.The sign-in script 522 creates and opens a further window (not shown)that allows the sender of the sender computer system 464 to enter logindetails 534 of a sender account 536. At 540, the sign-in script 522signs the sender computer system 464 into the sender account 536 usingthe login details 534. The sign-in script 522, at 548, stores asigned-in cookie 549 within the sender cookies 472. The sign-in panel520 further includes two payment selections, including a third partywallet button 544, and a Quick Response (QR) code 546. The third partypayment script 526 is stored in association with the third party walletbutton 544. The listen code 524 and pull code 528 are stored in anexecutable manner within the sender computer system 464. The sessionscript 486 retrieves the bitcoin address 510 from the sender cookies 472and displays the bitcoin address 510 within the sign-in panel 520.

As shown in FIG. 70 , if the determination at 516 is made that thesender computer system 464 is signed-in to the sender account 436, orafter the sender computer system 464 signs-in at 540 in FIG. 69 , thesession responder 498 proceeds to 550. At 550, the session responder 498transmits a signed-in panel 552, the listen code 524, the third partypayment script 526, the pull code 528 and a host account payment script554 to the sender computer system 464. The signed-in panel 552 is thesame as the sign-in panel 520 with the exception that it includes a hostaccount button 556 instead of the sign-in button 530. The third partypayment script 526 is stored in association with the third party walletbutton 544. The host account payment script 554 is stored in associationwith host account button 556.

Selection by the user of the host account button 556 initiates at 560the host account payment script 554. The host account payment script 554transmits an instruction to the transaction processor 154 of theselection. At 561, the transaction processor 154 makes a payment out ofthe sender account 536 to the receiver account 434 as hereinbeforedescribed without going through the bitcoin network or the block chain.

At 564, the transaction processor 154 updates the bits 480 by adding thebits of the present transaction to the bits 480 already stored withinthe data store. The bits 480 within the data store thus represent anongoing tally of all payments made in association with the button ID460. The bitcoin addresses 502 and 510 represent bitcoin addresses thatare generated for different sender computer systems 464 using the samebutton ID 460.

After the host account payment script 554 transmits the instruction tothe transaction processor 15, the host account payment script 554initiates the pull code 528. The pull code 528, at 574, pulls the newbit count from the bits 480 in the storage of the first host computersystem 14. At 566, the pull code 528 updates the bits 480 in the blogpost 428 based on the bits that have been pulled by the pull code 528 inFIG. 70 .

As shown in FIG. 71 , the user selects the third party wallet button 544which, at 560, causes execution of the third party payment script 526.The third party payment script 526 then transmits a transaction (ofbitcoin to the bitcoin address 510) to a third party transactionprocessor 562. The third party transaction processor 562 is hosted by ahost computer system other than the first host computer system 14. At564, the third party transaction processor 562 broadcasts thetransaction to the bitcoin network 12 and it is picked up by theblockchain.

The first host computer system 14 further includes a block chain checker567 and a bit updater 568. The block chain checker 567, at 570,periodically checks the block chain. For purposes of this discussion,the block chain checker 567 checks the block chain to determine whetherthere are any new transactions for the bitcoin addresses 502 and 510stored in association with the button ID 460. If the block chain checker567 finds any further transactions, the block chain checker 567 notifiesthe bit updater 568. At 572, the bit updater 568 updates the bits 480that are associated with the respective bitcoin address 502 or 510. Thebits 480 are updated by adding bits for any new transactions that havebeen picked up by the block chain checker 567.

At 574, the bit updater 568 transmits a push update notification to thesender computer system 464. The listen code 524 receives the push updatenotification. Websocket technology may for example be used for the pushupdate notification in order to open an interactive communication link.The listen code 524 is continuously active and therefore continuouslylistens for push update notifications. When the listen code 524 receivesthe push update notification, the listen code 524 initiates the pullcode 528. The pull code 528, at 574, pulls the new bit count from thebits 480 in storage. At 566, the pull code 528 updates the bits 480 inthe blog post 428 based on the bits that have been pulled by the pullcode 528 in FIG. 70 .

The QR code 546 may be scanned by an app on a mobile phone. The bitcoinaddress 510 is encoded in the QR code 546. The app can decode the QRcode 546 to extract the bitcoin address 510 and transmit a transaction(of bitcoin to the bitcoin address 510) to a third party transactionprocessor such as the third party transaction processor 562.

The button 484 shown in FIG. 69 can be used as a Tip button. A user ofthe sender computer system 464 can use the button 484 to make a smalldiscrete payment to the user of the receiver computer system 424. Such apayment may, for example, be as a reward for the content of the blogpost 428.

FIG. 72 shows a system 600 for transacting bitcoin. An Internetinterface 602 allows for user computers (user computers A to C) toconnect to the system 600 over the Internet. Order gateways 604 areconnected to the Internet interface 602 to receive buy and sell offersvia the Internet interface 602 from the user computers A to C. Amatching engine 606 is connected to the order gateways 604. The matchingengine 606 can receive the buy and sell offers from the order gateways604.

A feed generator 608 is connected to the Internet interface 602. Thematching engine 606 provides an output to a multicast pipeline 610. Thefeed generator 608 is connected to the multicast pipeline 610. The feedgenerator 608 receives the buy and sell offers from the multicastpipeline 610 and displays any buy and sell offers via the Internetinterface 602 to the user computers A to C. Users can thus view any buyand sell offers already in the system before making their own buy andsell offers.

The matching engine 606 can match buy and sell offers and broadcast thematches to the multicast pipeline 610. The feed generator 608 displaysthe matches via the Internet interface 602 to the user computers A to C.

An exchange database 612 includes records of bitcoin and currency heldby users A to C corresponding to the user computers A to C. A clearingmodule 614 is connected to the multicast pipeline 610 and receivesmatches from the multicast pipeline 610. An exchange 616 is connected tothe clearing module 614. The exchange 616 is also connected to theInternet interface 602. Users at the user computers A to C can provideinstructions via the Internet interface 602 to the exchange 616 totransfer bitcoin or currency. The exchange 616 has a number offunctions, including calculating total amounts of bitcoin and currencyas represented in the exchange database 612, cross checking bitcoin andcurrency totals between the exchange database 612 and an exchange user618, transferring bitcoin and currency between wallets A to C thatcorrespond respectively to the users A to C in the exchange database612, updating bitcoin and currency amounts of the users A to C in theexchange database 612, and may receive and execute instructions from theclearing module 614 to transfer bitcoin and currency between the users Ato C in the exchange database 612.

The exchange is connected to a ledger 620. The ledger 620 hold recordsof wallets A to C and further functions to cross-check balances betweenthe exchange database 612 and exchange user 618.

FIG. 73 a shows the beginning of a transfer-in algorithm that isexecuted by the system boo. A user at user computer A has $10 ofcurrency in the exchange database 612. For purposes of discussion, noother users have any bitcoin or currency. The exchange 616 calculatesthe total amount of currency and bitcoin within the exchange database612 and records the total amount as $10 and 0 bitcoin. The exchange user618 has $10, representing a previous transfer from wallet A to theexchange user 618.

At 1 a, a user at user computer B requests a transfer via the Internetinterface 602. The transfer may for example be to transfer $20 fromwallet B to the exchange user 618. At 1 b, the Internet interface 602provides the transfer request to the exchange 616. At 2 a, the exchange616 sends a cross-check request to the ledger 620 and at 2 b the ledger620 cross checks the totals in the exchange database 612 and theexchange user 618 before proceeding with a transfer. In the presentexample, the exchange database 612 has $10 and 0 bitcoin and theexchange user 618 has $10 and 0 bitcoin. The totals therefore match. Ifeither the currency or bitcoin totals do not match, the exchange 616does not make any further transfers and provides an alert to anoperator. The operator will then remedy any mismatches and thenreactivate the exchange 616. Because the totals match, the exchange 616proceeds with the transfer.

As shown in FIG. 73 b , the exchange 616, at 3, transfers $20 fromwallet B to the exchange user 618. The exchange user 618 calculates thetotal amount held by the exchange user 618 as $30, representing the $10that was there before the transfer plus another $20 because of thetransfer.

At 4 a, the exchange 616 records $20 for user B in the exchange database612. At 4 b, the exchange 616 updates the totals and records a totalamount of $30, representing the $10 held by user A and the $20 that hasbeen added for user B.

FIG. 73 c illustrates the totals in the exchange database 612 and theexchange user 618 after a further transfer wherein a user at the usercomputer C has requested a transfer of 5 bitcoin from wallet C to theexchange user 618. The exchange user 618 now holds 5 bitcoin and $30.User C, within the exchange database 612, now holds 5 bitcoin. Thetotals held with the exchange database 612 are $30 and 5 bitcoin. Forpurposes of discussion, this ends the transfer-in algorithm that wasstarted in FIG. 73 a.

FIG. 73 d shows a trading algorithm that is carried out after thetransfer-in algorithm if FIGS. 73 a to 73 c . At 5 a, a user (buyer) atuser computer A submits a buy offer of 2 bitcoin at $5 each ($10 total).As noted previously, all offers are transmitted via the Internetinterface 602, one of the order gateways 604, the matching engine 606and the multicast pipeline 610 to the feed generator 608 which displaysthe offers on the Internet interface 602. A user at user computer C canthus see the buy offer submitted by the user at user computer A. At 5 b,the user (seller) at user computer C submits a sell offer for 2 bitcoinat $5 each to the Internet interface 602. At 5 c, the buy and selloffers are submitted by the Internet interface 602 to one of the ordergateways 604. At 5 d, the order gateway 604 provides the buy and selloffers sequentially to the matching engine 606.

As mentioned, the user at user computer C can see the buy offer of theuser at user computer A before submitting the sell offer. In anotherexample, the user at user computer C can first submit the sell offer andthe sell offer can be seen by the user at user computer A. The buy andsell offers will typically be received by the matching engine 606 atdifferent times.

Multiple users may submit one or more buy and sell offers. The matchingengine 606 attempts to match the buy and sell offers to one another. At6, the matching engine 606 has matched the buy and sell offers receivedfrom users at the user computers A and C.

The matching engine 606 then provides a broadcast of the match over themulticast pipeline 610 discussed with reference to FIG. 72 . At 7 a, thefeed generator 608 receives a multicast that includes the match. At 7 b,the clearing module 614 receives the same multicast that includes thematch. At 8, the feed generator 608 provides a feed to the Internetinterface 602 that includes the match. As previously mentioned, the feedgenerator 608 also provides a feed of buy and sell offers to theInternet interface 602.

At 9 a, the clearing module 614 updates user A within the exchangedatabase 612 by adding 2 bitcoin and subtracting $10 from user A. At 9b, the clearing module 614 updates user C by subtracting 2 bitcoin fromand adding $10 to user C. The clearing module 614 makes the updatesdirectly to the exchange database 612.

There is no need for recalculating the totals within the exchangedatabase 612 at this stage. The same amount of currency or bitcoin thathas been subtracted from one user has been added to another user. Theexchange database 612 thus still indicates totals of $30 and 5 bitcoin.

FIG. 73 e shows a withdrawal algorithm that can be carried out after thetrading algorithm in FIG. 73 d . At 10 a, a user at user computer Crequests a withdrawal of, for example, $10. The request is received viathe Internet interface 602 and is passed on to the exchange 616 at 10 b.

At 11 a, the exchange 616 sends a cross-check request to the ledger 620and at 11 b the ledger 620 cross checks the totals before proceeding. Inthe present example, the amount of bitcoin in the exchange user 618 andthe total amount of bitcoin represented in the exchange database 612 arethe same and the total currency amount in the exchange user 618 and inthe exchange database 612 are the same. Should either of these twocomparisons result in a mismatch, the exchange 616 will not make anywithdrawal and create an alarm for an operator.

As shown in FIG. 73 f , at 12, the exchange 616 transfers $10 from theexchange user 618 to the wallet C. The exchange user 618 now has $20,representing the $30 in FIG. 73 e minus the $10 that has beentransferred out. At 13 a, the exchange 616 adds a representation foruser C in the exchange database 612 showing a withdrawal of $10. At 13b, the exchange 616 updates the totals. Because user C has made awithdrawal of $10, the total currency amount within the exchangedatabase 612 amounts to $20. The amount of bitcoin is still the same.The total amounts in the exchange user 618 and in the exchange database612 are thus the same.

Other users may submit similar withdrawal requests. For example, a userat user computer A may request a withdrawal of 1 bitcoin. The exchange616 then cross checks the total amounts, makes a transfer of 1 bitcoinfrom the exchange user 618 to wallet A and updates the exchange database612 by deducting 1 bitcoin from user A and updates the total amount ofbitcoin to 4 bitcoin.

FIG. 74 shows a diagrammatic representation of a machine in theexemplary form of a computer system 900 within which a set ofinstructions, for causing the machine to perform any one or more of themethodologies discussed herein, may be executed. In alternativeembodiments, the machine operates as a standalone device or may beconnected (e.g., networked) to other machines. In a network deployment,the machine may operate in the capacity of a server or a client machinein a server-client network environment, or as a peer machine in apeer-to-peer (or distributed) network environment. The machine may be apersonal computer (PC), a tablet PC, a set-top box (STB), a PersonalDigital Assistant (PDA), a cellular telephone, a web appliance, anetwork router, switch or bridge, or any machine capable of executing aset of instructions (sequential or otherwise) that specify actions to betaken by that machine. Further, while only a single machine isillustrated, the term “machine” shall also be taken to include anycollection of machines that individually or jointly execute a set (ormultiple sets) of instructions to perform any one or more of themethodologies discussed herein.

The exemplary computer system 900 includes a processor 930 (e.g., acentral processing unit (CPU), a graphics processing unit (GPU), orboth), a main memory 932 (e.g., read-only memory (ROM), flash memory,dynamic random access memory (DRAM) such as synchronous DRAM (SDRAM) orRambus DRAM (RDRAM), etc.), and a static memory 934 (e.g., flash memory,static random access memory (SRAM, etc.), which communicate with eachother via a bus 936.

The computer system 900 may further include a video display 938 (e.g., aliquid crystal displays (LCD) or a cathode ray tube (CRT)). The computersystem 900 also includes an alpha-numeric input device 940 (e.g., akeyboard), a cursor control device 942 (e.g., a mouse), a disk driveunit 944, a signal generation device 946 (e.g., a speaker), and anetwork interface device 948.

The disk drive unit 944 includes a machine-readable medium 950 on whichis stored one or more sets of instructions 952 (e.g., software)embodying any one or more of the methodologies or functions describedherein. The software may also reside, completely or at least partially,within the main memory 932 and/or within the processor 930 duringexecution thereof by the computer system 900, the memory 932 and theprocessor 930 also constituting machine readable media. The software mayfurther be transmitted or received over a network 954 via the networkinterface device 948.

While certain exemplary embodiments have been described and shown in theaccompanying drawings, it is to be understood that such embodiments aremerely illustrative and not restrictive of the current invention, andthat this invention is not restricted to the specific constructions andarrangements shown and described since modifications may occur to thoseordinarily skilled in the art.

What is claimed is:
 1. A platform comprising: one or more processors andone or more non-transitory computer-readable media storing instructionsthat, when executed by the one or more processors, cause operationscomprising: receiving, via a user device of a user, an applicationprogramming interface (API) request to initiate a payment to a merchant;in connection with the API request to initiate the payment, determininga first conversion rate associated with a first time, the firstconversion rate being a current conversion rate for an on-chain asset atthe first time; monitoring a blockchain and detecting, on theblockchain, a receipt of the on-chain asset at a second blockchainaddress from a first blockchain address associated with the user; inresponse to the detection of the receipt of the on-chain asset on theblockchain, converting the on-chain asset received at the secondblockchain address to an off-chain asset at a second time associatedwith a second conversion rate different from the first conversion rate,the second conversion rate being the current conversion rate for theon-chain asset at the second time; and sending, via a network, an amountof the off-chain asset to the merchant, wherein, despite the convertingoccurring at the second time associated with the second conversion rate,the amount of the off-chain asset sent to the merchant is based on thefirst conversion rate.
 2. The platform of claim 1, the operationsfurther comprising: in response to detecting the user accessing apayment user interface, using a public key to generate the secondblockchain address for the on-chain asset; and sending, via a network,the second blockchain address to the user device of the user.
 3. Theplatform of claim 2, the operations further comprising: in response todetecting the user accessing a payment user interface displaying agraphical component, using a public key to generate the secondblockchain address for the on-chain asset; and storing the secondblockchain address in association with a component identifier of thegraphical component displayed on the payment user interface.
 4. Theplatform of claim 1, the operations further comprising: in connectionwith a transaction with the merchant, using a public key to generate thesecond blockchain address for the on-chain asset; and sending, via anetwork, the second blockchain address to the user device of the user,wherein monitoring the blockchain comprises monitoring the blockchainfor the second blockchain address generated in connection with thetransaction with the merchant.
 5. The platform of claim 1, theoperations further comprising: receiving, via the user device of theuser, a session call; and in response to determining that the sessioncall does not include a recipient blockchain address, using a public keyto generate the second blockchain address for the on-chain asset.
 6. Theplatform of claim 1, the operations further comprising: in response todetecting, at the first time, the user accessing a payment userinterface displaying an option to submit the API request, executing alock for the payment to the first conversion rate associated with thefirst time; and using the first conversion rate to determine the amountof the off-chain asset based on a determination that the API request wassubmitted within a threshold time period associated with the lock. 7.The platform of claim 1, the operations further comprising: in responseto receiving the API request via the user device, executing a lock forthe payment to the first conversion rate associated with the first time;and using the first conversion rate to determine the amount of theoff-chain asset based on a determination that processing of a sendinstruction, initiated via the user device for sending the on-chainasset to the second blockchain address, occurred within a threshold timeperiod associated with the lock.
 8. A method comprising: receiving, at aplatform, via a user device of a user, a request to initiate a paymentto a merchant; in connection with the request to initiate the payment,determining a first conversion rate associated with a first time, thefirst conversion rate being a current conversion rate for an on-chainasset at the first time; monitoring a blockchain and detecting, on theblockchain, a receipt of the on-chain asset at a second blockchainaddress from a first blockchain address associated with the user; inresponse to the detection of the receipt of the on-chain asset on theblockchain, converting the on-chain asset received at the secondblockchain address to an off-chain asset at a second time associatedwith a second conversion rate different from the first conversion rate,the second conversion rate being the current conversion rate for theon-chain asset at the second time; and sending, via a network, an amountof the off-chain asset to the merchant, wherein the amount of theoff-chain asset sent to the merchant is based on the first conversionrate.
 9. The method of claim 8, further comprising: detecting the useraccessing a payment user interface; and generating, based on thedetection of the user accessing the payment user interface, the secondblockchain address for the on-chain asset.
 10. The method of claim 8,further comprising: detecting the user accessing a payment userinterface displaying a graphical component; generating, based on thedetection of the user accessing the payment user interface, the secondblockchain address for the on-chain asset; and storing the secondblockchain address in association with a component identifier of thegraphical component displayed on the payment user interface.
 11. Themethod of claim 8, further comprising: in connection with a transactionwith the merchant, generating the second blockchain address for theon-chain asset; and sending, via a network, the second blockchainaddress to the user device of the user, wherein monitoring theblockchain comprises monitoring the blockchain for the second blockchainaddress generated in connection with the transaction with the merchant.12. The method of claim 8, further comprising: receiving, via the userdevice of the user, a session call; determining that the session calldoes not include a recipient blockchain address; and generating thesecond blockchain address for the on-chain asset based on thedetermination that the session call does not include a recipientblockchain address.
 13. The method of claim 8, further comprising:detecting, at the first time, the user accessing a payment userinterface displaying an option to submit the request; executing, basedon the detection at the first time, a lock for the payment to the firstconversion rate associated with the first time; and using the firstconversion rate to determine the amount of the off-chain asset based ona determination that the request was submitted within a threshold timeperiod associated with the lock.
 14. The method of claim 8, furthercomprising: executing, based on the request, a lock for the payment tothe first conversion rate associated with the first time; and using thefirst conversion rate to determine the amount of the off-chain assetbased on a determination that processing of a send instruction,initiated via the user device for sending the on-chain asset to thesecond blockchain address, occurred within a threshold time periodassociated with the lock.
 15. One or more non-transitorycomputer-readable media storing instructions that, when executed by oneor more processors, cause operations comprising: receiving, at aplatform, via a user device of a user, a request to initiate a paymentto a merchant; in connection with the request to initiate the payment,determining a first conversion rate associated with a first time, thefirst conversion rate being a current conversion rate for an on-chainasset at the first time; monitoring a blockchain and detecting, on theblockchain, a receipt of the on-chain asset at a second blockchainaddress from a first blockchain address associated with the user; inresponse to the detection of the receipt of the on-chain asset on theblockchain, converting the on-chain asset to an off-chain asset at asecond time associated with a second conversion rate different from thefirst conversion rate, the second conversion rate being the currentconversion rate for the on-chain asset at the second time; and sending,via a network, an amount of the off-chain asset to the merchant, whereinthe amount of the off-chain asset sent to the merchant is based on thefirst conversion rate.
 16. The media of claim 15, the operations furthercomprising: detecting the user accessing a payment user interface; andgenerating, based on the detection of the user accessing the paymentuser interface, the second blockchain address for the on-chain asset.17. The media of claim 15, the operations further comprising: detectingthe user accessing a payment user interface displaying a graphicalcomponent; generating, based on the detection of the user accessing thepayment user interface, the second blockchain address for the on-chainasset; and storing the second blockchain address in association with acomponent identifier of the graphical component displayed on the paymentuser interface.
 18. The media of claim 15, the operations furthercomprising: in connection with a transaction with the merchant,generating the second blockchain address for the on-chain asset; andsending, via a network, the second blockchain address to the user deviceof the user, wherein monitoring the blockchain comprises monitoring theblockchain for the second blockchain address generated in connectionwith the transaction with the merchant.
 19. The media of claim 15, theoperations further comprising: receiving, via the user device of theuser, a session call; determining that the session call does not includea recipient blockchain address; and generating the second blockchainaddress for the on-chain asset based on the determination that thesession call does not include a recipient blockchain address.
 20. Themedia of claim 15, the operations further comprising: executing, basedon the request, a lock for the payment to the first conversion rateassociated with the first time; and using the first conversion rate todetermine the amount of the off-chain asset based on a determinationthat processing of a send instruction, initiated via the user device forsending the on-chain asset to the second blockchain address, occurredwithin a threshold time period associated with the lock.